WHAT IS TAXABLE ?

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AMIT (Querist)
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21 July 2010 MR. A GIFT A CAR(MARKET VALUE RS.5LACS) TO MRS. A AT

A. CONSIDERATION 6 LACS

B. CONSIDERATION 5 LACS

C. CONSIDERATION 4 LACS

D. WITHOUT CONSIDERATION

THAT CAR IS EMPLOYED BY MRS. A IN TAXI AND INCOME EARNED IS RS.5000

WHAT IS TAXABLE AMOUNT OF MR. X AND MRS. X

WILL THERE BE CLUBBING ?

PLEASE ANSWER POINT WISE

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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21 July 2010 A. There will be STCG for Mr. A of Rs. 1Lac (I have assumed Rs 5L as book value of the car) and Rs 5000 in Mrs A income
B. Rs 5000 will be added in Mrs A income
C Rs 1L will be STCL for Mr A and Rs 4L will be actual cost for Mrs A and Rs 5000 will be her income.
D Rs 5000 will be added in Mr A income. In this part clubbing provision shall apply.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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21 July 2010 agree with sudhansu ji, According to the question His answar is right.
But i dont know when there is a consideration then where is question of gift.

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Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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21 July 2010 I think his main query is related to gift thats why he mentioned gift in the beginning of the question

CA Sanat Pyne

CA Sanat Pyne (Expert)
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21 July 2010 I think so.