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Capital gains in whose hands it shall be calculated- very very urgent

Tax queries 318 views 5 replies

HI  all,

one Residential House Property is registered in the name of Wife on 23.10.2015, but agreement to sale is on 18.05.2015 i.e. all transactions happened in F.Y.15-16(A.Y.16-17) in the meanwhile the for the A.Y.2017-18 Rental Income from Such Property was Offered to Tax in the hands of Husband at the filling his personal IT Return.now on 07.07.2017 i.e.A.Y.2018-19 the said Residential Property was sold accordingly no rental income was offered in the hands of husband but Capital w.r.t that Property was shown in his IT Return filed for the A.Y.2018-19.

Now my Q/s is Wether Capital Gains can be Calculated in the hands of Wife or Husband?

She has no any Source of Income to acquire that property which is acquired some part as loan taken from bank some part through other private loans ..... repayment of interest & Principal is done through her daughter+son+husband incomes.

Kindly Tell in whose hands the capital gains can be calculated? it is very urgent.........

PLZZ RESPOND professioanl & experts.

Replies (5)

According to me, Short Term Capital Gain would arise in the hands of the Wife because she is the only owner of such property and her name is registered in the sale agreement.

Legally wife is owner of property so capital gain taxable in her hands, rental income offered for tax in husband itr is not relevant now. 

As such it will be long term capital gains in the hand of lady, provided the payments for the purchase were made through her account.

Originally posted by : CA. Umesh kumar
Legally wife is owner of property so capital gain taxable in her hands, rental income offered for tax in husband itr is not relevant now. 


Can Any one Provide me the Case Law /Circular for reference to consider Capital Gains in the hands of wife because she is the legal owner of the Property.

 

Actually, the case law should be for rental income to be shown in Husband's account, who is not owner of the property. Any gains or rental income mandatorily be declared under owner's account only.


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