Dear Sir,
My sister is going in for a divorce by mutual consent. She has a flat which has been purchased by her by taking a loan. As a compromise for reaching a settlement with her husband, she has agreed to sell her flat and give 50% of her proceeds to her husband. She has pending legal fees to be paid which she will do so with the sale proceeds. How will capital gains if any be calculated in this case ? Since the sale proceeds will be credited to her account, will she be liable for capital gains on the entire proceeds? Can she claim exemption for the amount given to her husband and the legal expenses.
Warm regards,
Deepak
