About clubbing of assets

This query is : Resolved

Guest

Guest (Querist)

27 March 2009 hello everyone
My query is regarding clubbing provisions under wealth tax act.
my question is:-
Suppose a husband transfers gold to his wife without adequate consideration and his wife pledges gold and purchases motor car from such loan.It is clear that gold will be clubbed with the assets of husband and motor car will be included in the assets of wife.But what about deduction of this loan?
As per my understanding i think this loan will also be considered as debt for husband but it cannot be deducted from his wealth as debt is taken for purchasing motor car which is not included in the net wealth of husband.(as per wordings of section 2(m) that debts to be deducted for debts incurred in relation to the assets included in net weath).
please suggest me treatment of the debt in this case)

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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27 March 2009 I think you are right as asset does not include in hsbands wealth so debt for pur of motor car will also not to be include in wealth of husband