Capital Gain

This query is : Resolved

Bharat Kumar (Querist)
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09 July 2010 Please tell me that if an assessee can gift his house to his daughter and his daughter sold the house in that year than what is the tax treatment of the assessee and his daughter can be asseessed?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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09 July 2010 There will not be any tax computation in the hands of the assessee. However, his daughter will be taxable for that house under the head of capital gain u/s 49(1), i.e., Previous owner.

Computation will be:
Capital Gain = Sale consideration - Exp. on transfer - Cost of Acquisition(after indexation) - Cost of improvement(after indexation)

Above amount will be taxable in the hand of daughter of the assessee.

Regards!!!
Dinesh S. Adhikari

CA Shiv

CA Shiv (Expert)
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09 July 2010 Well my opinion is bit different...
It will be taxed in hands of assessee under clubbing provision.... and not daughter..

year for cost of indexation will be date of purchase of the assessee.( father).

taxindiaconnect

taxindiaconnect (Expert)
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09 July 2010 Section 64 does not provide for clubbing of income in the hands of the trasferor in case where the property has been transferd to a daughter. In my opinion the view suggested by Dinesh is correct.

taxindiaconnect

taxindiaconnect (Expert)
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