sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Direct Tax »
 CBDT breather soon on past angel tax demands
 Infosys-built system to cut tax return processing time to 24 hours by 2020
 Notification No. 04/2019-Central Board of Indirect Taxes and Customs
 Income tax exemption limit likely to be increased to Rs 5 lakh
 Bringing back the local in the national tax regime
 CBDT chief cautions I-T officials about direct tax collection growth rate
 No TDS for long-term property lease premium, says Mumbaiā€™s Income-tax Appellate Tribunal
 Bansal Overseas 121 KM Stone, Near Namastesy Chowk, G. T. Road Karnal vs. ACIT Karnal Circle, Aayakar Bhawan, Sector- 12, Urban Estate Karnal
 How to invest, how much you may invest and save in taxes SBI Tax Saving Scheme
 Taxman on a refunds spree as income tax returns hit record high in FY19
 CBDT issues final notification on securities tax exemption

Gift of capital asset to spouse is not chargeable to tax
November, 02nd 2018

I and my wife jointly own a flat in Mumbai. The EMI is paid by me. My wife has received some proceeds from selling a flat which was purchased by her. I want to sell the Mumbai flat to her at market price by paying due registration and stamp duty charges. Can I sell a flat to wife who is also joint owner of the property?

– Alok Sheopurkar

Your wife is a 50:50 owner in the flat, but she did not pay any money for its purchase. Now you want to sell your share in the flat to your wife at market price. Any transfer of capital asset entails capital gain chargeable to tax. However, gift of capital asset to spouse is not chargeable to tax. Accordingly, if the purpose is to transfer the ownership of the flat to your wife such that she becomes the 100% owner of the said flat, you can consider gifting her your share without any consideration. The taxability of the gift shall remain tax-free, irrespective of the fact whether she has funded the purchase of the flat or not.

– If a person starts a business of real estate with `5-10 lakh capital and has no other income source, will it be considered business income and charged under Profits and Gains from Business and Profession (PGBP) or charged under capital gain? Also, will that be covered under Micro, Small and Medium Enterprises (MSME)?
—Ajaz Khan

The individual is starting a business as a proprietor, without forming any legal entity, viz., company or LLP. Further, the real estate purchased is done with the sole purpose of resale. Thus, it is evident that the individual shall be engaged in the business of real estate trade. Hence the provisions of PGBP shall be applicable. Benefits of MSME can be claimed by proprietors but only if the business is registered as an MSME.

– My brother works with a shipping company in Singapore. He stays in India for about 100 days. Will he be exempted for paying tax in India?
—Dolly Moga

If he is an Indian citizen working abroad or a member of a crew on an Indian ship, then he is considered as an Indian resident if he stays in India for more than 182 days during that financial year. Non-resident Indians are subject to tax in India only in respect of India sourced income (that is, income received, accruing or arising in India or deemed to be received, accrued or arisen in India). However, income which is received and earned outside India is not taxable in India

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions