When there is a consideration in sales proceed (receiving the money), whether the property acquired by gift, purchase or ancestral, Section 194-IA will come into the picture.
Sir, thanks for reply. I have one doubt. When the spouse sells this gifted property, does the donor have to pay tax on capital gains thus received by the donee? If yes, then how section 194-IA come into play, because now TDS certificate will be issued in the name of donee, but the tax has to be paid by donor?
Donor will not come into picture here. It is the asset of the donee. Hence, the tax liability will be with donee.
Sir, does clubbing of income from sell of property not apply here? Donor purchased property in the name of the spouse directly. I feel clubbing applies for rental income from such property as well as capital gains from such property. Please let me know your views.