10 July 2014
Dear sir, I have some queries about capital gain from sale of house. Those are following- 1) assessee purchased a flat with his own money but a portion of selling consideration was received in his bank and the rest was in his wife's bank, who is a housewife and was not involved at the time of purchase.
2) they booked a new flat and the payment was made from his and his wife's bank. How to show this gain? Should his wife need an it file?
3) father purchased a house that a son inherited and sold? Should it be capital gain? If Yes? What's the cost price? Is it the price his father purchased with?
4) sale deed is signed on march14 but sale consideration is received on april14. For which year it will be capital gain? Pls reply soon.
1.If Husband is sole owner of property then CG is computed in his hand and amount received in wife's account is exempt. 2.If both of them are joint owners then it would be taxable in hand of each joint owner in proportion of his or her holding. 3.Transfer from inheritance is exempt u/s 47(iii). If sold by son it would be taxable in the hands of son. It is a purchase price for which it acquired by his father. 4. As per Section 53A of Transfer of Property act, only singing of sale deed is one of the condition to determine the date of transfer but not the sole condition and hence actual possession and receipt of consideration are important factors to constitute it as transfer. Hence it would be Apr-14
12 July 2014
Dear sir, thanks for answering me. Still I have some confusions.
1. Husband paid the total purchase value and sole owner of the property. But sale considerations received 30% in husband' s account and 70% in wife's account. How to compute tax liability?
2. Husband paid the total purchase value and after some years made his wife 50% owner. Now sale considerations received in husband's account 30% and in wife's account 70%. How to compute tax liability? pls make me clear.
27 July 2014
1.Collaterally speaking wife's income is "Receipts without consideration" which other wise could have taxed in your wife's hand as per section 56(2)(vii. however said rule is not applicable to relatives and said income is not taxable in wife's hand.
Merely receipt of 30% consideration wife's account doesn't absolve the husband from tax liability for such part of receipts. So, 100% sale consideration is taxable in the hand's of husband only.
2. since they are co-owners, tax liability computed proportionate of their holding i.e. 50%. Ignore the receipt percent i.e (30:70)
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