One property has been transferred by my father which is in his name and the proceeds were credited into my account..later on it will be transferred to my mother account after few days in installments..in whose hands taxability of the same arises?
Needa urgent help!!!
Obviously the taxability arises in the hands of your father as he was the owner of the property and sale deed was executed in his name. And the consideration should have been received in his bank account only to maintain the transparency in the eye of the department.
In your case, compute the capital gain and declare the same in your father's return.
As the consideration has been received in your bank account, it is suggested that show this amount in your balance sheet as 'Loan from Father' or else add to your capital by stating it 'Gift from Father' and accordingly file your return. At the same time you should have all the proofs with you that substantiate that the amount is related to the sale of property of your father. In case, department sends notices to you, you can show them all these proofs.
This is my opinion only. Other experts' opinion are welcome.
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