08 June 2013
Matters 1. There is 2 Partnership Firm as IMI and TTE 2. Where A, B, C, & D is partner of IMI and W, X, Y & Z in TTE 3. W has purchase a land with building (Residential House) in the year of 2004 and now in 2012 "W" transfer such property to his wife "A" by settlement dead in consideration of natural love and affection. And same is registered. 4. Now "A" want to give such property by lease deed to IMI firm where she is a partner.
Question?? 1. Is this asset taxable in the hands of "W" (Transferor) as per Section 4(1)(a)(i) of Wealth Tax Act? 2.The income from such property will be clubed in the hands of "W" as per Sec 64(1)(iv) or not.Please suggest. 3. As per Section 22 house property, "W" should be deemed owner of the property and income from such house property will be taxable in the hands of W. Is this correct? 4. If A transfer such property to IMI by lease dead with consideration of Rs.40lac for 40 years. Is it called transfer under section 2(47) Capital Gain? Is it consider as capital contribution and taxable under section 45(3),(4)? 5. Is it possible to return back such property to his husband "W"? 6. Also provide other tax impact? Its urgent.
09 June 2013
Q.2 : It is clear that the income from the property will be considered in the hands of the husband. . The applicable Section for the purpose of computation of income will be Section 27(i) and not Section 64(1)(iv). .
09 June 2013
Q.4 Yes it will be called a transfer U/s 2(47) as some rights in the property are being transferred by A to the firm.
Further on transfer of a capital asset in the form of leasehold property, The amount being credited or paid to the account of A and A is already a Partner in IMI, so Section 45(3) applies in this case. . Section 45(3)is silent about ownership of the asset transferred. . Further, the income is indirectly arising from the capital asset to W implication of Section 64(1)(i) will make such gains taxable in the hands of W. .
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