Clubbing of income

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When a property is transferred to a spouse for inadequate consideration, the transferor is the deemed owner. If the spouse sells the property and incurs capital gains, these gains are typically clubbed with the transferor's income. The key question is who can make the investment to claim eligible capital gains exemptions – the transferor, the spouse, or both. The advice is that the investment must be made by one individual to claim the exemption.

srinivasan ak

srinivasan ak (Querist)
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08 March 2020 If an individual say Mr.X transfers a house property to his wife Mrs.X for an inadequate consideration then Mr.X is considered to be the deemed owner. In the above case If Mrs X, sells the house property and gets capital gains then it should be clubbed in the hands of of Mr X. My query is that to avail any eligible capital gain exemptions, who has to make investment? Is it Mr X or Mrs X?