Income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 if a husband transfer a property 2 his wife as a gift then u/s 64 dis property will clubbed in the income of transferor.bt if wife sell dis property and frm consideration price she invest in shares dn dividend received will be cluubed in the name of husband and if wife makes investment of dividend income and return frm dividend investment income will be assesable in the hands of wife.is it right or not pls help me

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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14 July 2012 1. Firstly, when an individual transfers a house property to his wige without consideration, then Section 27 is allowed and NOT Section 64.

The transferor shall be the deemed owner of the property.

Rental income & capital gain arising from such house property shall be taxable in the hands of the transferor.

2. Income on income is NOT clubbed.

So if the wife invests the rental income or capital gain income in some other assets, income from such assets shall NOT be clubbed in the hands of the husband.

So, dividend income shall not be clubbed (moreover it is exempt if received from an Indian company)

Similarly if dividend income is invested, income from such investment shall NOT be clubbed.

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 dividend income will not clubbed coz of exempted income if it is not exempted dn it will clubbed in husband income or not pls tell

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 sir thanku phle thanks krna bhul gyi thi thanku so much sir

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