Sale of immovable property

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This query is : Resolved

Sarath kumar.M (Querist)

01 September 2018 Hi Friends,

One of my relative gifted an immovable property consisting of land and residential building to his wife on Feb, 2018 and subsequently wife sold the same in March, 2018 and the tax u/s 194IA was deducted in the name of wife by the purchaser. Now when they want to file the return, can the wife take the original cost of purchase by her husband as Cost of acquisition or the amount fixed in the gift deed? Also what will be the period of holding of property of wife?

Could you please throw some light to this issue?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

01 September 2018 In case of gift, the cost of acquisition will be the cost incurred by the previous owner

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

01 September 2018 Period of holding will be calculated from the date the gift giver(husband) acquired the property till the date of sale by the gift receiver(wife)

Sarath kumar.M

Sarath kumar.M (Querist)

03 September 2018 Thank You Sir. Should we incorporate the transaction of gift by the Husband in his return as sale of immovable property?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

03 September 2018 Gift is not sale of immovable property so need not mention in the Husband ITR

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

03 September 2018 Gift transaction would have been effected through registered gift deed i suppose. Only if it is so the wife will be seller

Sarath kumar.M

Sarath kumar.M (Querist)

05 September 2018 Thank You Sir for the valuable information. Yes the transfer from husband to wife was through a registered deed.