Concealment

 Mr. Anil did u shown balance sheet when u purchased that land?

When u gifted ur wife did she paid Wealth Tax?

if both question is yes or no then your wife may b get indexation of the said property and whatever value arise less sale value is taxable under long term capital gain tax

 Thanks. I am advised that it is the liability of husband to pay tax on long term capital gain even though  he had gifted it to his wife. The view is that husband having gifted the property, it now the liability of the wife to pay long term capital gain. 

Husband showed it as purchase in his income tax return. Wife did not pay any wealth tax etc.

Anil,

You have not stated whether the wife has any taxable source of income or not. Liability to pay income tax would depend on whether the wife has any taxable source of income individually or not. If the answer is in affirmative then the wife alone is responsible and liable to pay income tax on the net proceeds. If the answer is in negative then the income from net proceeds of sale of land of wife would be clubbed with the income of the husband and taxed accordangly.

It should be borne in mind that the amount mentioned in the sale deed would taken into consideration for arriving at tax liability.

if the wife is to be taxed then the cost of acquisition of land incurred by husband would be taken as cost of acquisition of land incurred by wife as on date of gift deed.

 Tks. Wife has taxable income. Does Sec.64 apply in such cases?