Capital Gain

Tax planning 691 views 5 replies

CA Raghavender

CHARTERED ACCOUNTANT

305 Points Posted on 09 July 2009

It is taxable in the hands of B or taxable in the hands of A?

Inthis transaction B didn't take any advantage from this transaction.

Replies (5)

RITESH KOTHARI

B.COM FCA DISA(ICAI)

778 Points Posted on 09 July 2009

SITUATION 1: A & B ARE NEITHER SPOUSE NOR FATHER-IN-LAW AND DAUGHTER-IN-LAW:CAPITAL GAIN TAXABLE IN THE HANDS OF B

SITUATION 2: EITHER SPOUSE OR F-I-L AND S-I-L: CAPITAL GAIN TAXABLE IN THE HANDS OF A

CA Nitin Wadhwani

Chartered Accountant

4469 Points Posted on 09 July 2009

In my opinion, it will be taxable in the hands of A only.

RITESH KOTHARI

B.COM FCA DISA(ICAI)

778 Points Posted on 10 July 2009

Mr.NITIN

PLZ CLARIFY YOUR POINT WITH APPROPRIATE REASON

It will be taxable in hand of A only, because definition of capital assets is much wider than normal sense. If A has not shown these transaction in his books it will be deemed as Benami Transaction for which there can be legal consequences

Thanks,

Lovenish Bansal

dushyant

accountant

27 Points Posted on 12 July 2009

Originally posted by :raghu

Onus of proof will be on A that the land have been purchased by A-himself and bot by Mr. B, which will not be possible for A to do so as documentary evidence are in against of it.

A will not take any benefits and Mr. B is liable for payment of tax.

Hai!all
I hv doubt regarding transfer of land...
A and B are friends A purchase land register in the name of B and purchase consideration paid by A, later A sold that land and sale consideration took by A in this situation what is the tax tretment ?
It is taxable in the hands of B or taxable in the hands of A?
Inthis transaction B didn't take any advantage from this transaction.