Capital Gains Tax query

[Guest]

Hello Forum Members,

I have a capital gains tax query for a property sold recently in Kerala. A commercial property was sold with 3 joint owners(all related family members). The buyer provided 2 cheques as payments, split with different amounts in the name of 2 owners only. For capital gains tax calculation(my understanding is 20% flat), would it be viewed by the income tax department as-

a) Each of the 3 owners received equal amounts irrespective of actual amounts received(due to equal 3rd ownership each) and pay capital gains tax accordingly

or

b) Individual tax liability based on actual amounts received by each individual. For eg Owner 3 received nothing for the sale and hence has 0 CGT liability.

Hopefully a qualified individual is able provide proper tax advice. Thanks in advance.

[Guest]

The Sale consideration will be divided in between the Three members as per their Share in the Registered Document and taxed accordingly. If no share is drafted in Documents, divided equally among Three members.

AI Summary

Allocation of sale consideration apportioned by registered ownership shares or equally among joint owners for capital gains tax liability. Allocation of sale consideration for a jointly owned property is apportioned among owners according to their registered shares and each owner is taxed on their apportioned amount; if the registered documents do not specify shares, the consideration is divided equally among the joint owners for capital gains tax purposes.