Long term capital gain tax: spouse

Dear Sir,

Hope you are doing well !!

Yes, it will be treated as your income due to clubbing income.

Yes, even the capital gain from mutual funds will also be clubbed in your income.

Capital gain is taxable @10% if the capital gain exceeds INR 1 lacs during the year.

Hello,

Yes, the capital gain would also be clubbed with your income.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

If the investment has been made out of own fund then no clubbing however if the investment has been made by using your gift money then the capital gain will be clubbed.

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Thank you.

Hello Sir,

The clubbing provision is applicable on capital gain also.

So, it will be clubbed with your income.

Dear Sir,

Here is my reply to your query:

In case you will invest from your income in the name of your wife in that case it will be treated as "Direct or indirect transfer of assets to your spouse by you for inadequate consideration" and Income from out of such asset is clubbed in the hands of the taxpayer that is You.

But if you transfer the money to your wife as gift on the basis of gift deed, then gift will be exempt in the hands of your wife. Further, your wife can invest the same in mutual funds and income thereon will be taxable in the hands of your wife and not clubbed in your income.

Hope your query is resolved.

Let me know if you want to discuss anything else!

Thanks and Regards 

Divya Chugh