Alimony given in shape of capital gain. Capital gain treatment

is Alimony in shape of capital asset given by husband to wife is taxable for husband in capital gain or not?
Replies (16)

Yes. It will be transfer as on the date and stamp duty value or the value paid as alimony, whichever higher, will be taken as sell value.

but sir according to section 2(47) of IT Act it is not covered from definition of Transfer and if Alimony given in shape of capital asset is covered from transfer then plz guide the sub section of 2(47) from which it is covered.

Whether alimony was awarded in terms of any capital asset?

Isn't It a barter exchange?

no it is not a barter or exchange. Alimony is a legal obligation paid against the court order wherein no monetary consideration is involved.

What is court order? To give capital asset?

Or any amount awarded first?

court order is to give capital asset

Generally courts give such option only when husband would have prayed for his inability to pay cash. How can court ask directly to give away any personal asset without offered for?

both parties involved in civil case are interested to give and take of capital asset as Alimony at compromisation level and court had decided for what both parties are agreed. court give an order to husband to give Alimony in shape of capital asset. plz guide capital gain position for husband

Capital gains liability would arise as transfer deed will be registered at circle rate.

in which sub section of 2(47) of IT Act it will be considered as Transfer? plz guide.

Sub-sec 2(47)(ii) .... w.r.t. explanation 2 therein.

in which subsection of 2(47) of IT Act it will be covered from transfer? plz guide.

(ii)  the extinguishment of any rights therein ;  ....

Explanation 2.—For the removal of doubts, it is hereby clarified that "transfer" includes and shall be deemed to have always included disposing of or parting with an asset or any interest therein, or creating any interest in any asset in any manner whatsoever, directly or indirectly, absolutely or conditionally, voluntarily or involuntarily, by way of an agreement (whether entered into in India or outside India) or otherwise, notwithstanding that such transfer of rights has been characterised as being effected or dependent upon or flowing from the transfer of a share or shares of a company registered or incorporated outside India;

meaning thereby "extinguishment of any right"
but not title. in my question a complete title as Alimony given not only rights given. plz guide

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