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Clubbing of income doubt

200 views 6 replies

Maya

Student

663 Points Joined July 2017

Dear friends or experts,

case: Mr X is doing real estate business in small level ..he purchase some assets (land) in the name of his wife ( housewife) after sometime he sells a part of that lands and receives that Income in his account... In this scenario he would like to club this income as taxable in his hand... Is this applicable? please kindly advise.

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210651 Points Joined July 2016

Who sold the land? Who was signing as owner of the land in the sale document?

Profits/gains would be assessed in the owner's ITR....

Maya

Student

663 Points Joined July 2017

Actually that land was purchased from a 3rd party by Mr.X in the name of his wife. Hence while selling his wife signed as owner in the sale deed.

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Receiving funds to his account is not alone the criteria to consider income.Need to see the owner & other aspects .

Since the ultimate is source to buy the land is from his earnings.So it may come in application / diversion of income.

If there is no gift deed then it will be taxable in the hands of Me.X