Accounting entry for Gift transaction

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This discussion covers the accounting entries required when a son receives property as a gift from his father. It details how to record the transaction in both the father's and son's books, including the initial gift and the payment of stamp duty and registration charges. The process also touches upon how to declare the gifted property in the son's Income Tax Return (ITR) under exempted income.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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13 July 2022 Sir,
It assessee (son)property gift received from father value rs:25 lacs.registration and stamp duty charges paid by son.
Question:
Above mentioned transaction show procedure for son in accounting books entry and it returns

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2022 In the books of Father..
Dr. Gift
Cr. property

In the books of Son...
1. Dr. Property (value as per father's books of acct)
Cr. Gift
2. Dr. Property
Cr. Bank/cash (stamp duty & registration charges).

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2022 In ITR of Son, under Schedule 'Exempted Income', property as per book value.

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