Query on apartment sale in mumbai

Devang (Querist) 21 October 2013 This query is : Resolved
I am joint owner of a flat in Mumbai with my mother, myself being primary owner. We bought it in 2007 and I still have outstanding loan against it. We plan to sell it and eventually invest in 2 separate properties. Is there a written way to distribute the sale proceeds that would help us to divide the money between us. Also what are the tax implications for me as I am a tax payer whereas my mother is housewife.

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ajay sethi (Expert) 21 October 2013
both have 50%share in said flat as they are joint owners of the flat . the sale proceeds have to be reinvested after repayment of loan to avoid taxes . consult your CA for tax implications

Devang (Querist) 21 October 2013
Thanks for your response.
1. To clarify further on the same, does joint ownership signify having 50% share in the sale proceeds straightaway or the proportion in which we had contributed for this flat purchase decides division of the sale proceeds.
2. Do we have to reinvest the sale proceeds in this financial year after repayment of loan to avoid taxes?
Thanks again.

Guest (Expert) 21 October 2013
As far as tax implications is concerned, Mr. Sethi is correct. However, as far as 50% share in the flat is concerned, the Transfer of Property Act is very clear. Consult your lawyer.

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