Gain on Sale of assets transferred/ received u/s 64(1)(iv) & 64(1)(vi) be clubbed U/s 45(1) or not

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This query is : Resolved

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This discussion explores whether capital gains from assets transferred to a spouse or daughter-in-law, without adequate consideration, should be clubbed under Section 45(1) of the Income Tax Act. It clarifies that while capital gains are generally calculated per Section 45(1), if the asset was gifted, the tax liability is taxed in the hands of the donor as per Section 64.

k M Goyal

k M Goyal (Querist)
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27 June 2025 Section 64(1)(iv) His & her spouse
Section 64(1)(vi) Daughter-in-law
Sir

As per section 45 (1) Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54, 54B, 54D, 54E, 54EA, 54EB, 54F , 54G and 54H, be chargeable to income-tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place.

Capital gains from property received by gift or will are calculated based on the cost of acquisition by the previous owner, as per Section 49(1) of the Income Tax Act.

Calculation of capital gain:

Capital Gains = (Sale Price - Cost of Transfer - Indexed cost of acquisition - Indexed Cost of improvement) x Applicable Short Term/Long Term Capital Gains Tax rate.

Sir
Can Capital gains from sale of property received u/s 64(1)(iv) & section 64(1)(vi) (house property transferred to his or her spouse and Daughter-in-law otherwise than for adequate consideration) be clubbed as per section 45 (1) or clubbed as per section 64(1)(iv) and section 64(1)(vi) with the income of transferor?
Regards
K M Goyal

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 June 2025 Capital gains are calculated based on Sec, 45(1) IT act.
But if the property was gifted to spouse or DIL. the tax liability as calculated as per above method, gets taxed in the hands of the donor as per sec. 64 IT act...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2025 Good luck..

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