Capital gain in sell of flat and gift amount

Save Share

This query is : Resolved

S DASGUPTA (Querist)

17 July 2015 I have following issues seeking valuable suggestion/clarification before filling ITR forms.:

1. My wife (housewife) purchased a flat 6 yr ago from my salary income/savings and got registered in her name only. Now, i am selling the flat in next month. However, some advance amount has been taken from customer thru cheque and deposited in wife's bank account in March 2015.
Now please let me know how to declare this amount in ITR-2 so that tax is avoided in AY-2015-16. Since the balance amount of cost of flat will be received to my wife in Aug'15 after sell, the capital gain will be declared in AY 2016-17. Now, please clarify who will declare the capital gain amount- my wife or myself since the flat was purchased earlier from my income.
2. Is there any provision to declare non taxable gift amount in ITR form. If yes, pl specify the ITR forms for individual & HUF.

Clarifications on above issues will be highly appreciated

SUBHASIS BANERJEE

SUBHASIS BANERJEE (Expert)

19 July 2015 In AY 2015-16, there will be no capital gain since there is no transfer of property takes place in that year. Accepting advance without giving possession of the property will not trigger any tax exposure.
In AY 2016-17, the capital gain will be taxable in the hands of your wife. Being long term capital gain she could make tax planning to reduce the incidence of tax.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now