I gifted a plot of land to my wife purchased by me in 2001 which she sold last month. Who will be taxed for the capital gains? —Mahesh Raina
Any income arising to the spouse of an individual from assets transferred to the spouse for inadequate consideration shall be clubbed in the hands of the individual. Thus, in your case, capital gains arising on sale of land gifted by you shall be treated as your income. However, the capital gain shall be first computed in the hands of your wife and she will be entitled to claim exemption under Section 54EC provided the stipulated conditions are complied with. Only the balance capital gain, if any, shall be clubbed in your hands.
I got Rs 1 lakh as rent from a tenant. How will it be taxed? —Apoorva Bisht
As per section 25A of the Income Tax Act, unrealised rent realised subsequently from a tenant shall be deemed to be the income from house property in the year in which the rent is realised. However, you will be allowed deduction of 30% and thus, only Rs 70,000 shall be taxable. Further, you will be eligible to get deduction under section 24(b), provided prescribed conditions are satisfied.
How can I file the return of income for FY16? —Satya Rao
You can file a belated return for FY16 by the end of 31st March, 2018. However, in that case one should be very careful to avoid any omission or error as the belated return once filed cannot be revised. Secondly, the loss (except house property loss) relating to year for which belated return is filed, becomes dead loss and can’t be adjusted against the future income. Therefore, in future year, you should also be careful about not adjusting such losses against the income arising in future years.
The writer is founder of RSM Astute Consulting Group
