Think twice before purchasing property in joint names

Implications of purchasing property in Joint Names by Adv. R. P. Rathod.

More often than not a flat is acquired in joint names of two or more persons and the agreement for purchase is silent in respect of proportions of their Co-ownership rights. In such circumstances, as per law the proportions of co-ownership rights would be measured with reference to funds contributed to acquire the flat by each of them. It is also possible that the earlier asset was entirely owned by the person and by consequently long-term capital gains have been earned by him and to avail exemption in respect of such long-term capital gains he invests his own funds but in the purchase agreement adds names of his family members.

. . .Read More