Capital gain

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CA Shyam Agarwal (Querist)
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09 January 2016 hello friends
One of my client purchased a Housing property in 2010 with the name of his wife but loan was taken with his personal name although his wife was also joint with this loan. but EMI was regularly being paid out of husband`s income.
In 2015 this housing property was sold for rs. 30 lac.
and payment was received in following manner.
1. Approx Rs. 1200000/- was paid directly to DHFL (loan was taken from DHFL in 2010)
2. Approx Rs. 1200000/- was received by chq. which was cleared in saving account in which husband and wife both are account holder.
3. Approx Rs. 200000/- was received by chq. which was cleared in current account or saving account in which only husband are account holder.
4. Remaining amount was received in cash.

my question is

1. who is liable to pay capital gain tax husband or wife
2. if this case select for scrutiny then how to show the accounting entry to AO. Bcz some money received by her husband in personal name and some money was received in joint account.
3. Whether clubbing provision will applicable.

I am totally confused in above case plz help me.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 January 2016 It has not been mentioned in the query that wife has paid certain amount.
.
Taking this fact into consideration, the entire property becomes the property of husband.
He is liable to capital gains.
. Payment received in joint account may be credited to the Husband as joint account does not mean that joint holders should have equal participation. Balance belonging to each account holder is shown in their respective individual balance sheets.
Clubbing provisions : Not Applicable.
.
In a case wife has also paid a certain amount, her proportionate share may be considered in respect to total amount of the property and accordingly the proceeds can be accounted for.
.

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