Friday, April 17, 2015

Gift of house to spouse cannot be disregarded for the purpose of assessee's eligibility for deduction u/s 54F



Gift of house to husband prior to the date of transfer of the original capital asset(other than any residential house) cannot be disregarded for the purpose of reckoning assessee's eligiblity for deduction u/s 54F even if assessee along with her husband and spouse continue to reside in the same house even after the gift. Section 64(I)(iv) will not operate to nullify the gift and would operate only to club income from the gifted house in the hands of the donor spouse. The gift cannot be regarded as a sham merely because assessee along with her husband and spouse continue to reside in the same house even after the gift

No comments:

Share sale by Passive Shareholder taxable as Long-Term Capital Gains and not Business Income irrespective of non-compete clause in the SPA

  As per Income Tax Laws, any sum received or receivable in cash or kind under an agreement for not carrying business or profession is treat...