Q. > Please Help: Income Tax

186 views • Question added Mar 14, 2016 • Income Tax • By Gautam Thakur , CA , Chandigarh

RELEVANT FACTS OF THE CASE
An Individual got a Plot of Land allotted in his name from HUDA in Haryana in F.Y 1991-92 at the allotment cost of Rs. 175,000/- ,which were duly paid in full via instalments each year till F.Y 1998-99 and got the possession in F.Y 2000-01.
In F.Y 2009-10, Individual transferred the said plot of land via family transfer permission under HUDA and the said plot of land was re-allotted in his wife’s name via conveyance deed registered at transfer value of Rs. 201,000/- and Rs. 6,000/- was paid as registration fees. However, in actual, no consideration was paid for the above transfer and now, wife wants to sell this plot of land in F.Y 2015-16.
QUERY
I would like to know your suggestions on the following below mentioned points:-
a) Whether the above transfer between husband and wife be termed as exempt transfer (gift of immovable property) u/s 56(2)(vii) ?
b) Whether, wife can claim Cost of indexation as per section 49(1) and period of holding as per section 2(42A) of the said plot of land?
c) Whether, clubbing provisions will apply in above case in above case of transfer of land for inadequate consideration ?