Long Term Capital Gain on residential property

Hiren Doshi 1
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Hi, I had a residential house registered in the name of my cousin brother. We live in a joint family. We had purchased the house in 2006 for Rs. 25 lacs and sold the house in 2011 for Rs. 75 lacs. I have opted for a housing loan from LIC in my name for the new house and hence they requested to register the new property in my name alone. However the proceeds of the old house have been utilised to pay the down payment for the new house. But the problem is the new property is not registered in my cousin's name. Please suggest what is the option out for the above problem or will we have to pay Long Term Capital Gain Tax on the sale proceeds received towards old house.

Please advice.

Regards, Hiren Doshi

long-term-gains capital-gains ltcg income-tax
1 Answers

In case old house was registered in name of your cousin brother only, long term capital gains would be taxable to him. If your cousin has no share in new house, he will be liable to pay income tax @ 20% on long term gains.

Issue may be solved if new property is in joint names of your cousin and you. If cost of his share in new property is more than LTCG, there won't be any income tax payable u/s 54.

Pankaj Batra5212

The new property is registered only in my name and he does not have any share in it? Is there a way to add his name in Property now?

Hiren Doshi•

Your cousin needs to pay his share in property and his name can be added while registration of property.

Pankaj Batra•

Thanks Pankaj, But the problem is that the registration is already done and the original document is with LIC Housing Finance. Please suggest if i can add is his name now to the Property

Hiren Doshi•
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