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Clubbing income under income tax act.

Tax queries 437 views 5 replies

Mother gifted his plot to his major son on Dt.01-10-2016. Immediately on 05-10-2016 son sold the same property. Now the capital gain tax is payable by son or mother.kindly clarity.

Replies (5)

It will be paid by u sir, there is no question of clubbing.

Clubbing will not come into play in this case.
'Transfer' of a capital asset to a relative defined under Income Tax act is exempt in the hands of person transferring such property. Further, any gains arising on subsequent transfer of such property by the person to whom such capital asset was transferred, is liable to capital gains tax. Cost to the 'previous owner' shall be the cost of acquisition for him.(As per Bombay High court decision in CIT v. Manjula J. Shah). Consideration shall be the actual consideration received subject to the provisons of section 50C.

Regards
I have lot of clarification in WCT. if any one has FAQ kind of thing pls share.

It's a question of Transfer and not clubbing of income. 

The tax will be payable in the hands son - the period of holding by the previous owner will also be considered for determining the asset as long term capital asset and benefit of indexation available. ( the year of purchase by mother will be taken) - Manjula j Shah vs CIT 

Hello 
Yes Clubbing provision wont apply in this case..


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