Capital Gain

This query is : Resolved

NITHYA PANNERSELVAM (Querist)
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21 July 2011 My Client purchased LAND in his and wife's name in 2006. But while selling he sold in the name of HImself,wife and two sons. and wants to share the income between all four. Is there anything legally wrong?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 July 2011 The land in wife's name can be sold by wife
only and the sale proceeds belong to the wife only.

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As such she only will be liable for capital gains tax.

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Please ask the client, whether she has gifted/sold the respective shares to him and his 2 sons ?