Gift tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2016 My Aunt (Chachi) wants to gift me a shop?
(She is the spouse of my deceased father's brother)
What are the tax implications?
Gift Tax to be paid by me or her and at what rate?
Stamp duty charges to be bear by me. Whether i can claim these expenses?

Amol S Joglekar

Amol S Joglekar (Expert)
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01 September 2016 the stamp duty value as on the date of gift will be treated as your income under section 56(2)(vii) (b)
http://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2016 After Stamp duty to be paid.
But whether any gift tax to be paid or not?
Whether she will be covered under relative or not?

Amol S Joglekar

Amol S Joglekar (Expert)
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01 September 2016 01. No gift tax.
02. Stamp duty and registration charges to be paid as applicable on the date of registration
03. Chachi (Aunt) is NOT covered under the definition of RELATIVE, with respect to you... (Chacha i.e. uncle is relative but not his wife)

Priyanshu Goel

Priyanshu Goel (Querist)
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01 September 2016 The above property has been purchased by my grand father and in his will, my chachaji was the owner of the property and he has given us the property but no written agreement has been made (in between chachaji has been died) Now Chachiji and her childrens are ready to transfer the property in my name but all expenses has to bear by me

Amol S Joglekar

Amol S Joglekar (Expert)
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01 September 2016 ok....you go by section 56 (2) (vii) (b)

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2016 As per the above provided section, chachiji is not covered under relative definition.
This means, the above property to be valued as per stamp duty value and this amount will be deemed to be the income under the head income from other sources and tax liability occurs in this case.
But earlier, you have said that gift tax not applicable. How and why??

Amol S Joglekar

Amol S Joglekar (Expert)
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02 September 2016 Sec 56 is of INCOME TAX ACT.
GIFT tax has been abolished.

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2016 Income tax liability occurs in this case??

Amol S Joglekar

Amol S Joglekar (Expert)
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02 September 2016 yes..... it is as per section 56 of INCOME TAX ACT.

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 is there is any other way to reduce the burden of tax liabilty

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2016 Whether we can file a suit against them in family court?

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2016 Whether she can gift it to my son on his marriage.
In that case any tax liability occurs or not?

Amol S Joglekar

Amol S Joglekar (Expert)
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02 September 2016 No....that benefit is given for RELATIVE......

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 in that section, any one can give gift (relative is no necessary)

Amol S Joglekar

Amol S Joglekar (Expert)
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02 September 2016 but limit is 50,000 for non relative.....

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 Provided further that Sec-56(2)(Vii) does not apply to any sum of money or any property received- I. From any relatives, or II. On the occasion of the marriage of the individual, or III. Under a will or by way of inheritance, or - See more at: http://taxguru.in/income-tax/taxability-gift-562vii.html#sthash.kuOgPkfa.dpuf

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 i have again read the definition of relative in the bare act

Amol S Joglekar

Amol S Joglekar (Expert)
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02 September 2016 on the occasion of marriage.......it has its own limitation......the intent of the Act is the gifts received from various people who attend the marriage.....which is , in fact, quite customary in India......
Getting a gift of immovable property in lumpsum.......will attract the attention of the Income tax department.....You will be carrying that risk....
Accordingly take the call

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 For the purposes of this clause, "relative" means— (i) spouse of the individual; (ii) brother or sister of the individual; (iii) brother or sister of the spouse of the individual; (iv) brother or sister of either of the parents of the individual; (v) any lineal ascendant or descendant of the individual; (vi) any lineal ascendant or descendant of the spouse of the individual; (vii) spouse of the person referred to in clauses (ii) to (vi);

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 chachiji should be covered as per vii + iv

Priyanshu Goel

Priyanshu Goel (Querist)
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02 September 2016 as chachiji is spouse of my father's brother