Capital gains tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2012 Dear Sir,

I have a query on Capital Gains Tax. The following is the text of the query.

Husband has brought a plot of land in his wife's name about 6 years back in Vizag. Now his spouse wants to sell the plot of land and gift the proceeds of sale to her husband who in turn invests the amount received from his wife in the constuction of a residential house in Hyderabad. Please explain the tax implications of this transaction. Gift of a capital asset is covered under section 47(iii) of the Income tax act,1961 and is not regarded as a transfer. So will the gift of money to husband will attract capital gains tax or will it be charged under the head 'Income from Other Sources'?---Please clarify

Regards

Jawahar

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

20 August 2012 6 years back, when the plot of land is purchased in the name of wife, it is now regarded as the property of WIFE. The capital gain will accrue and arise to WIFE. Subeject to taxability of capital gain in the hands of, the rest of the query has no tax implications as such.

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