MY WIFE HAS SOLD A FLAT GIFTED BY HER MOTHER FOR 50 LAKHS AND THE ENTIRE PROCEED HAS BEEN INVESTED IN 54EC BONDS, APART FROM THAT SHE HAS RECIEVED INTEREST FROM FD IN BANKS ,PLEASE LET ME KNOW WHICH ITR IS TO USED AND WHAT WOULD BE THE TAX LIABILITY

Ans: As per income tax provisions, any income arising from asset transferred to wife without consideration will be clubbed in the hands of husband.

Accordingly, if property is purchased in the name of wife and wife has not contributed anything from own source at the time of acquisition then clubbing provisions is likely to applicable at the time of transfer of such property. Capital gain will be taxable in the hands of husband.

Ans: Income from capital gain is required to be reported in ITR 2. Person earning income from sale of investment is required to provide details of personal property held by him/her in ITR if income is more than 50 lacs during the year.

Ans: Namaste,

I understand your situation and I'll try to provide a simple explanation.

For your mother's case, since she has sold a property and made a long-term capital gain, she will need to file her Income Tax Return (ITR) using Form 2 instead of Sahaj (Form 1). The reason being, Form 1 is for individuals having income from salaries, one house property, other sources (interest etc.) and having total income up to Rs 50 lakh. However, in your mother's case, there is a capital gain involved, so Form 2 is more appropriate.
The sale proceeds of the house will be reported under the head 'Capital Gains'. The purchase value of the plots will be reported as the 'Cost of Acquisition' under the same head. The capital gain tax paid will be reported in the 'Taxes Paid and Verification' section.
As for your case, since you have been made a co-owner of the plots, you should also declare this in your ITR. However, as you have not contributed to the purchase, it will not have any tax implications for you. You can mention it under the 'Asset and Liability' section if your taxable income exceeds Rs 50 lakh.
Please note that this is general advice and the exact details may vary based on the specifics of the transactions. It's always a good idea to consult with a tax advisor or chartered accountant to ensure all details are accurately reported.

Ans: For the income tax purpose, person who make the payment at the time of acquisition of property, is considered as owner. By adding name is agreement, ownership for the income tax purpose will not be decided.

Further to report gain from capital gain, ITR 2 is applicable.

Ans: For resident individual having interest income charegeble under the head Income from other sources, ITR 1 is applicable subject to certain other conditions (like no clubbing of income, income less than 50 lacs, no foreign assets etc)