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Purchase Property/Plot

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Ghanshyam Lohar

ACCOUNTANT

60 Points Posted on 08 May 2021

A retired Govt. employee gives Rs. 35 Lakh out of His pension amount to Her wife, who is also a govt. teacher and she purchase a plot of Rs. 45 Lakh. Then What will be tax liability of both person during file income tax return?

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Quick Summary

A retired government employee gifted £35 lakh from his pension to his wife, a government teacher, who then purchased a plot for £45 lakh. This discussion explores the tax implications for both individuals. Key points include whether the gift to the wife is taxable, the application of clubbing provisions where the husband might be considered the deemed owner, and who can claim deductions for interest and principal after construction.

CMA Poornima Madhava

CMA

13117 Points Posted on 08 May 2021

1) No tax on gift to wife 2) Though the plot would be registered in the name of the wife, the husband would be the deemed owner and clubbing provisions would attract. 3) Deductions of interest and principal can only be claimed by the husband after construction of house (if applicable).