# gifting
1 posts in `gifting` tag
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A Gift That Keeps on Taxing? ITAT Delivers Key Ruling on Capital Gains Between Spouses
The Income Tax Appellate Tribunal (ITAT) has clarified that when an asset gifted to a spouse is sold, the resulting capital gains must be taxed in the hands of the gifting spouse, not the recipient. This blog breaks down the mandatory "clubbing of income" provision under Section 64(1)(iv) of the Income Tax Act, explaining its implications for taxpayers, the calculation of gains, and the importance of proper documentation.
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By Krishna
