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Gift of immovable property to aunt - tax liability

Ashwin Jain (Others) (27 Points)

07 July 2015

Hello, I would like to know whether an immovable property gifted by an individual to his/her aunt (Spouse of Father's (Elder) Brother) is exempted from income or gift tax.

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9 Replies

Kuldipsinh Jadeja (Job) (357 Points)
Replied 07 July 2015

It would be treated as gift to relative and hence not liable to income tax.

Ashwin Jain (Others) (27 Points)
Replied 07 July 2015

Thank you for your reply. Does this specific relation fall in the list of relatives, gifts from whom are exempt from tax? If so, can you point me to the section of the IT Act which covers this?

suchit gulati (Ipcc student) (146 Points)
Replied 07 July 2015

It covers under head other source Where gift from relative any time is not taxable and it cover u/s 56

ayushi agarwal (student) (27 Points)
Replied 07 July 2015

Refer sec 56(2)(vii) for the same

Siddharth (article) (96 Points)
Replied 08 July 2015

As ur saying that individual gifted property to his aunt then aunt not consider in definition of relatives so it is taxable over n above 50000.

Ashwin Jain (Others) (27 Points)
Replied 08 July 2015

Thank you for our response.Let us assume that this relationship is not covered u/s 56 and hence the gift is taxable.

Suppose the brother of the individual's father (individual's uncle) has passed away. In such a scenario, is it possible somehow for the individual to gift an immovable property of stamp value above Rs. 50,000 to his/her aunt. I mean to ask if property can be gifted by the individual to his uncle (who has passed away) and if it can be inherited by his wife (individual's aunt) naturally?

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 25 July 2015

You can gift it to your aunt directly as she is covered under the list of relatives. ( she is the spouse of the brother of the parent of the individual). BTW you cannot gift anything to a deceased person.

Ashwin Jain (Others) (27 Points)
Replied 29 July 2015

Dear Rajagopalkrishnan R,

Thank you for your response. May I request you to point me to the section of the IT/Gift Tax Act which states that this relationship is covered under the list of relatives who are exempt from tax on Immovable Property received as a gift?