18 December 2013
Respected Sirs, I transferred 8 lakhs to my wife's bank a/c with intention to purchase a plot of land in her name by utilizing the transferred money . Thereafter , a plot of agricultural land has been purchased vode a registered sale deed in my wife's name by utilizing that transferred money . Now my confusions/queries are as follows; 1) What have I gifted to my wife in the eyes of income tax laws -the money(8 lakhs) or the agricultural plot? 2)How to show (documentation) that the same was gifted? 3)Will the income be clubbed with my income??!! 4)How will agricultural rent be treated?who will show it in returns? 5)If the agricultural land is sold whose capital gains will it be.mine or wife's?
18 December 2013
You have gifted the land. Incom arising therefrom will be taxed in your hand. Thus agricultural income will be included in your income for rate purpose.
19 December 2013
Dear Sir, One last clarification regarding my query. Who will be liable to pay the capital gains tax arising from sale of gifted property- Donor or done. Thanks in advance
CAclubindia
