Could you please advise me on below matter?
My wife purchased a property / vacant land in 2002 for Rs. 2 lac. on G.P.A. by its original owner. No Sale Deed was done on that time. In year 2008 as a safety, my wife felt better to get the property registered through Sale Deed, hence made a Sale Deed in the name of her husband / me for sale value of Rs. 250000/-. You know as per a rule, GPA owner can not get the Sale Deed done in her own name, so ‘Sale Deed was done in my / husband’s name. Since it was only a documentary formality, value was declared only Rs. 250000/-.
I wish to know whether this transaction of property between 'Wife & Husband' can be treated as ‘Gift’ to Spouse ? with no Tax liabilities, or will effect on any Tax liability and called as Long Term Capital Gain to Wife? She mentioned this in Balance Sheet already. We both are Income Tax Assessee.
Can I know what is the exact ruling of income tax deptt. in such cases for property transaction in relatives/ wife- husband. or any previous court references of same cases?
Please advise, I shall be thankful,
Best regards,
Vikas
9810785682
CAclubindia
