Capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 In case a husband buys a property and transfers it to wife within 2 months in an out of court settlement when they are going trough a divorce would he be liable to Short lerm capital gain Tax?

Guest

Guest (Expert)

10 May 2013 It will be a transfer of asset in the hands of the husband, but exempted transfer, as it is a constitutes the gift.

Hence no capital gain in the hands of the husband.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 Thanks. Can you please quote the section

Guest

Guest (Expert)

10 May 2013 Section 47 (iii), Transactions not regarded as transfer.

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Deepak Agrawal

Deepak Agrawal (Expert)
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10 May 2013 Under Section 56(2)(vii) it is exempted under the hand of receiver (wife) and further it is not a transfer within the meaning of section 47 as non consideration for transfer is arising here. Thus no tax impact in hand of transfer (husband) as well.

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