Search Results For: 64


QUERY: If husband invests his own funds in house property but the property was purchased in his wife’s name and the same is sold, in whose hands the capital gains will be chargeable to tax?
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Husband has invested his own funds in house property but the property was purchased in his wife’s name. So he has transferred the property to his wife. On sale of the said property the capital gains would be chargeable in the hands of husband

QUERY: Mr. X owns more than one residential house property. He makes a gift of ` 80 lakhs to Mrs. X who does not own any house property. She buys a commercial property using the gift amount and sells it after 4 years. She then purchases a residential house in her name and claims deduction u/s. 54F of the Act.
Even if clubbing provisions are applicable it appears the net income i.e. amount of Capital Gain after claiming deduction u/s. 54F, only could be clubbed with the income of Mr. X. Is it correct?
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The income will have to be computed as if it is being assessed in the hands of the spouse or minor child and then translated into the hands of other spouse or parent, as the case may be

QUERY: Whether clubbing provisions of section 64(2) can be said to be applicable to the HUF in respect of sum of money received without consideration as the wordings in the section relate to only property? Can it be said that the sum of money received is separate from the property envisaged in section 64(2)?
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Yes, Normally property has been understood in widest possible terms. The Explanation 1 to section 64(2) clarifies that the word “property” has been defined very widely. Property includes any interest in property, movable or immovable, the proceeds of sale thereof and any money or investment for the time being representing the proceeds of sale thereof and where the property is converted into any other property by any method such other property. Therefore “any sum of money” is property.

QUERY: One of my clients created Family benefit trust for benefit of minors children (Determined with specific share) setting the jewellery and ornaments worth more than 2 crores to be handed over to them / their wives / meet education and marriage expenses till the date of marriage or 18 year’s of age.

To my opinion the income, if any shall be taxable as individual in the hands of each beneficiaries through trustee having taxable income at the slab rate applicable under section 161. Trust as such is not taxable nor income to be clubbed with parents under section 64 of the Act.

What will be the wealth tax liability. In wealth tax whether the trust as individual is taxable as whole on total wealth of the trust fund (If individual includes Trust) or like income tax each beneficiaries having taxable wealth of Rs. 15,00,000/- of more will be taxable through trustee.
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The income would be clubbed in the hands of parents under section 64(1A) of the Act, if it accrues or arises during the minority.