Capital gain & gift tax.

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This query is : Resolved

sunil pitre (Querist)

08 April 2016
Father sold flat for the price 38 lacks, which purchased 11 years ago at 14 lacks.

After 4 months of sold, father purchased new flat in joint name with married daughter for the price 78 lacks. Out of 78 lacks 40 lacks contributed by the daughter. (No capital gain tax paid by the father on his sale transaction.)

After 5 months of new purchased flat, father wish / want to gift his share in new purchased flat to his daughter by gift deed.

Is it possible ? And do father need to pay capital gain tax which not paid earlier? Whether it attempts any kind of other tax?

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

09 April 2016 The assessee as a donor transferred the immovable property out of love and affection without consideration to the daughter and same is not regarded as transfer of a capital asset under a gift, or will or an irrevocable trust does not attract long term capital gain as the provision of Sec 47(iii) of the Act.. Hence, the gift does not attract long term capital gain tax to the father. The cost of acquisition to the daughter will be cost to the father.
However, we make it clear that during the restriction period, the daughter shall not transfer the property by any means

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