LIVE GST Audit Course by CA Sachin Jain. Register Now!!

If husband gets 50% right of gift of urban plot from wife

Valerian Dsouza (Manager Audit & Taxation) (405 Points)

22 August 2013

If tax payer husband receives Gift in the form of 50% right in the Urban Plot of land through gift deed in April, 2012, from tax paying wife, which is sold in Sept, 2012

1. Who should show the Gift in Return of Income?

2. What should be the value of Gift? Gift purchased by wife in 1990 for 15 lacs through her own funds, gifted in 2012 that time value was substantially higher.

3. Gifted without consideration by spouse, so clubbing provisions would apply, when the plot was sold, who is liable to declare the income? wife or husband?

Thank you so much for kind support and advice!

Reply
Follow
Share

3 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 22 August 2013

Plot purchased by wife in 1990.

She gifts 50% rights to her husband in 2012.

Both sold the plot in 2012..

Gift deed should be stamped and registered. And shall be non-taxable in the hands of the husband.

Now the plot is sold and both shall be liable to pay long term capital gain and file returns individually. In case, the husband avails exemption u/s 54F and invests the entire amount of long term capital gain, then no tax shalll be payable for both husband and wife. But if some tax is payable in husbands ITR, the wife shall be liable to pay due to clubbing provision.

1 Like

Valerian Dsouza (Manager Audit & Taxation) (405 Points)
Replied 23 August 2013

Originally posted by : Mihir
	Plot purchased by wife in 1990. She gifts 50% rights to her husband in 2012. Both sold the plot in 2012.. Gift deed should be stamped and registered. And shall be non-taxable in the hands of the husband. Now the plot is sold and both shall be liable to pay long term capital gain and file returns individually. In case, the husband avails exemption u/s 54F and invests the entire amount of long term capital gain, then no tax shalll be payable for both husband and wife. But if some tax is payable in husbands ITR, the wife shall be liable to pay due to clubbing provision.

Thank you so much Mr. Mihir,

After selling the Plot, to get benefit of 54F, can husband and wife together buy one house property in joint names and deposit un utilized funds in Joint Capital Gain Accounts Scheme before due date of filing of return?

Or should they invest separately for house property and deposit unutilized funds in separate Capital Gain Accounts Scheme before due date of filing of return to avail section 54F benefit?

Thank you so much

Mihir (Wealth Manager) (5293 Points)
Replied 23 August 2013

No, it is not compulsory that husband and wife shall have to invest separately. They can deposit in joint capital gain account and then within 2 years invest in purchasing another property in joint ownership. But you cannot file your IT returns before depositing in capital gain account.

1 Like