Me and my spouse are getting a gift of house property from my mother with 50% share each.But our Advocate says that the gift deed will have to be made to me at 100% from my mother and later I can give a gift of 50% to my spouse. We wanted to sell the house property and reinvest in a new apartment home with joint ownership. Will there be an issue under IT Act ? Can IT authority object to this route to claim full deduction for the reinvestment of capital gains ?
- In case of transfer of house to spouse without adequate consideration, the individual who transferred the asset is treated as deemed owner. In such cases, income is clubbed in the hands of transferor.
- Gift of 50% each to you and your spouse is correct
- Period of holding would include the holding period of previous owner. Cost of acquisition would be cost in the hands of previous owner.
- You can claim exemption u/s 54
For detailed discussion you may opt for phone consultation
Here the husband is giving a gift of 50% of the property he got from his mother , to his wife as a gift by way of a gift deed duly registered and not a transfer .In that case will the seeming provision apply ?
Please clarify who is getting a gift from whose mother?
If the husband if getting a gift from his mother, then whether the wife directly gets gift from mother in law or from husband, clubbing provision will be applicable and entire capital gain will be taxed in husband hand. Hence, it is advisable to keep the gift 100% with husband to avoid confusion.
You can sell and invest in new property in husband name and no objection would be received from IT department.
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- Income arising to wife from such gifted house property would be taxable in the hands of husband only