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.
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Clubbing of income doubt
Replies (6)
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....
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.
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
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
Thank you all for ur prompt reply.
Even there is gift deed to wife income arising out of sale is still come under clubbing provision and will be taxed to husband
Who sold the land and in what perspective?
The owner of the property receives the income.
The owner of the property receives the income.
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