Taxation

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Irfan Gori (Querist)
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28 December 2011 What is the tax consequence if...
A husband transfers an amt of money say suppose Rs.10lacs to her wife.
and wife purchases a house from the same and later sells it and there is capital gain on this transfer?

Please reply asap

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 December 2011 Clubbing provisions apply only when an ASSET has been transferred.

Also, an individual shall be treated as deemed owner of a house property if he has transferred the house property to his/her spouse without consideration.

In this case, since cash gift has been given by husband to wife and the wife has purchased a house property out of the above gift, the above provisions are not applicable.

Accordingly, capital gain on sale of house property shall be taxable in the hands of teh wife and not the husband.

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Irfan Gori

Irfan Gori (Querist)
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28 December 2011 Thank you sir
and what if the wife is:
a)an assessee filing return
b)not an assessee filing return

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 December 2011 The fact whether the wife is filing a return or not is of no relevance.

When the capital gain arise she will have to file a return of income in respect of such gains.

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