query regarding cap gains and clubbing

According to me also deduction under section 54 will not be allowed.

Dear sravan

I think Mrs.A is make investment in the partnership firm as she is a partner .

As per above the clubbing provission the income is taxable on mr. A  only up to the share of profit of Mrs. A

in the proportion amt given by A to Mrs. A

If am wrong ple let me know.

TILL 2007:

Mr.A will be treated as Deemed Owner u/s 27 and Hence, IHP will be taxed in the Hands of Mr.A

Sale of Land by Mrs.A:

In case of Capital Gains, first Income has to be FIRST Calculated in the hands of Mrs.A and then it is to be clubbed.

So when you calculate in the hands of Mrs.A, you will give her the Deduction u/s 54 and then arrive at the final figure.

This NET income after the deduction is clubbed.

Power to Firm

Power to firm is irrelevant here as there is transfer of property to the firm.

Shiva