tax for selling property

[Guest]

Hello

I purchased a flat in India in 2008 on my spouse (house wife) name, when I was in USA. We both were in USA when the purchase was made. We sold the flat with no profit in 2018 and payment has been made to my spouse account.

Now I would like to know

1. Is this considered as gift?

2. is there any capital gain tax as there is no profit.

3. Any other tax queries which may arise in future.

Your suggestions are greatly appreciated.

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

1. You have to decided whether it is a gift. You may gift the same to your wife.

2. If the guideline value is more than your sale value then capital gains tax will arise. Please check it up.

3. Based on the point no. 2, queries may be rised by the Department.

AI Summary

Capital gains tax may arise if guideline property value exceeds sale consideration, regardless of apparent absence of profit. Whether sale of a flat held in a spouse's name gives rise to tax consequences depends on characterization of the transfer and comparison of sale consideration with the guideline value; if the guideline value exceeds the sale price a capital gains computation and tax may arise, and authorities may query valuation, ownership characterisation and reporting.