Query on investing sale proceed for joint owned property
Bhaskar
(Querist) 16 October 2014
This query is : Resolved
Dear Sir,
Recently we have sold property which was jointly owned by me and my wife, my name was first in sale deed and my wife's name was second in sale deed. We want to park money in bank deposit before we finalize new property and invest proceed in this. Can I put entire sale proceed in bank FD on my wife's name or we need to divide it equally and put in my and wife's bank account ?
Thanks,
Bhaskar
Devajyoti Barman
(Expert) 16 October 2014
You can either of the two. Only difference is once you deposit the whole money in your wife's a/c she may refuse to part with your half share in which case you will have little option but to forget it.
Anirudh
(Expert) 16 October 2014
Dear Mr. Bhaskar,
It is not clear whether you received the sale proceeds in separate cheque having your name and your wife's name or a single cheque.
If you have received the cheques in separate names, it will be advisable to put the FD in those names separately. This is not due to any compulsion of law. But to facilitate easy income tax computation and taxation. For instance, the interest that you will earn on the FD is taxable. If it is put in one name, the bifurcation etc., the attended documentation will be difficult. Therefore, if it is in separate FDs one can easily relate the interest earned by each person and offer it to tax without any difficulty.
ajay sethi
(Expert) 16 October 2014
agree with MR Anirudh
Rajendra K Goyal
(Expert) 16 October 2014
Whether any long term capital gain exist in the sale proceeds? If so the new purchase deal has to be confirmed in the prescribed period (3 years) and the amount has to be kept in Bank account under LTCG.
Anirudh
(Expert) 18 October 2014
Dear Mr. Bhaskar,
One more thing which you need to keep in mind.
In case you do not utilise the capital gain in purchasing a new asset before the due date for filing of your annual I.T.Return, then in that event, you are required to deposit the amount of capital gain, before filing the I.T. return, with any of the authorised Banks under the Capital Gains Accounts Scheme, 1988.
Therefore, even if you temporarily put the money in the FDs as suggested in my previous reply, you have to necessarily remove it and put in the Capital Gains Account before filing the income tax return.
Bhaskar
(Querist) 28 October 2014
Thanks all experts. Based on responses I would like to clarify, we had received two separate DD. The property I have bought four year ago and there is long term capital gains out of sale proceed.
I will open capital gains tax account and park money there. I just need one more clarification on do I need to do this before 31st March 2015 or before filing this year's return (before 31st July 2015)?
Thanks in advance,
Bhaskar
Anirudh
(Expert) 28 October 2014
Before filing of i.t. return i.e. before 31.7.2015.
Bhaskar
(Querist) 28 October 2014
Thanks all.
