Do you have to pay tax on capital gains earned by your wife?
David Craig 
Amit Maheshwari, Partner, Ashok Maheshwary and Associates replies, “Yes, you will have to pay tax on the capital gains earned by your wife from the sale of the stocks, which appear to have been bought by her from the amount transferred by you to your wife.
What is the tax rate for long term capital gain?
According to the union budget 2018, 10% tax is applicable to long-term capital gain more than Rs.1 lakh on the sale of securities. There is no use of investing in CGAS if the taxpayers don’t want to invest in another property.
When is a sale of a house considered a capital gain?
Under the income tax law, if house property is held for less than 24 months then gain arising from sale or transfer of such house property will be short term capital gains. If house property is held for 24 months or more then gain arising from sale or transfer of such house property will be long term capital gains.
When do you not have to pay income tax on capital gains?
Income tax exemption is applicable on the long-term gain which occurs from the sale of a capital asset under section 54 and 54F of IT Act if the investment is made in construction and purchase of house property, subject to specific conditions.
Do you have to pay taxes on Long Term Capital Gains?
Gains from transfer of long-term capital asset will be Long Term Capital Gains (LTCG). You can avoid taxes on LTCG by investing in another property or specified assets as per the Income Tax Act.
When do you qualify for a capital gain?
You qualify for capital gains if you as section 54 F does not mandate that the house should be purchased in the name of the tax payer only. It merely says that the tax payer should have purchased or constructed a residential house. Your capital gains will not be limited to your share.
Who is in charge of capital gains tax?
The chancellor has asked the Office of Tax Simplification (OTS) to report on how CGT rates compare with other taxes, and how the present rules may distort behaviour. The Treasury played down expectations of any major policy change.
