Husband’s tax was paid by wife by mistake then what happened
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New Delhi: A strange case recently came up in the Income Tax Appellate Tribunal (ITAT). This case was related to an NRI couple. In this, the husband’s long-term capital gain (LTCG) tax was erroneously filled by the wife. The husband sold the property in India but by mistake it was disclosed in the tax return of the wife. The wife also duly paid capital gains tax on it. But the Income Tax Department demanded tax by adding Rs 1.2 crore to the husband’s income. The reason for this was that the husband had not disclosed it in his tax return. When the matter reached ITAT, it took a practical stand on it.
The tribunal said that this is a case in which income has been declared and tax has also been paid on the same. But this was done by a man whose liability was not made. The tribunal said that the same income cannot be taxed twice. The tribunal said that the tax paid by the wife on LTCG should be refunded. This amount should be adjusted against the tax demand of the husband. The tribunal, in its order, said that the manner in which this is to be done is for the tax authorities to decide. There should be no burden on the taxpayer in this.what was the matter
The tribunal said that this is a case in which income has been declared and tax has also been paid on the same. But this was done by a man whose liability was not made. The tribunal said that the same income cannot be taxed twice. The tribunal said that the tax paid by the wife on LTCG should be refunded. This amount should be adjusted against the tax demand of the husband. The tribunal, in its order, said that the manner in which this is to be done is for the tax authorities to decide. There should be no burden on the taxpayer in this.
what was the matter
In this case, Shrikant Shah had approached the Appellate Tribunal. He had sold two properties in the financial year 2012-13. He paid capital gains tax on one but not on the other. The tax consultant mistakenly disclosed this in his wife’s tax return. In his appeal, Shah said that there was no loss of revenue in this case as his wife had already paid the tax. Husband and wife both came under the same tax bracket and the tax rate on them was also the same. ITAT said that one transaction cannot be taxed twice.
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