Tax on sale of house property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 February 2016
My wife get land gifted by his father and we are planning to construct a house on that land and
My Question is
(1). Is it possible to completely transfer the house to my wife name and what is the process ?
(2). Is there any further problem arises when we want to sell the gifted land and house ?
(3). Income tax implication on sale of gifted land ?
My Question is
(1). Is it possible to completely transfer the house to my wife name and what is the process ?
(2). Is there any further problem arises when we want to sell the gifted land and house ?
(3). Income tax implication on sale of gifted land ?
Suresh Ramaswamy
(Expert)
17 February 2016
There are certain ambiguities in your query. You have not given any information about the income of your wife. Assuming your wife is a homemaker with no separate source of income:
Since the land is in the name of your wife, any construction thereon should be made by her - but since she has no source of income she would not be able to meet the cost of construction. Should you finance the whole cost of construction, then even if the house is registered in her name, it will be a gift from you. The income from any gifts made by the spouse is clubbed in the hands of the spouse under section 64 of the Income Tax Act, 1961. If the house is in your name and the land in your wife's name at the time of sale two separate agreements need to be made. At the time of the sale of gifted land, the price to the donor or as at 1st April 1981, whichever is later, will be treated as cost of acquisition. Else there is no other problems anticipated.
Since the land is in the name of your wife, any construction thereon should be made by her - but since she has no source of income she would not be able to meet the cost of construction. Should you finance the whole cost of construction, then even if the house is registered in her name, it will be a gift from you. The income from any gifts made by the spouse is clubbed in the hands of the spouse under section 64 of the Income Tax Act, 1961. If the house is in your name and the land in your wife's name at the time of sale two separate agreements need to be made. At the time of the sale of gifted land, the price to the donor or as at 1st April 1981, whichever is later, will be treated as cost of acquisition. Else there is no other problems anticipated.
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