Dear Friends,
I have a query on Capital Gains Tax. The following is the text of the query.
Husband has brought a plot of land in his wife's name about 6 years back in Vizag. Now his spouse wants to sell the plot of land and gift the proceeds of sale to her husband who inturn invests the amount received from his wife in the constuction of a residential house in Hyderabad. Please explain the tax implications of this transaction. Gift of a capital asset is covered under section 47(iii) of the Income tax act,1961 and is not regarded as a transfer. So will the gift of money to husaband will attract capital gains tax or will it be charged under the head 'Income from Other Sources'?---Please clarify
CAclubindia
