Capital gains tax on property received as gift
This query is : Open
01 May 2017
A bought a flat a decade ago.
Less than three years ago, he gifted it to his two sons in equal shares through a registered gift deed.
Stamp duty was paid on the prevailing market value.
Now sons want to sell it.
What would be the value to compute capital gains tax? The price at which the father had purchased or the market price at the time of gift deed as reflected in the registered gift instrument?
01 May 2017
Gift received by son from Father is not considered as transfer and hence exempt from capital gain tax, but in future when son sells such gifted property then price at which it was purchased by original buyer i.e father is to be taken as purchase value or cost of acquisition.
Message likes :
1 times
01 May 2017
It is perfect response. Thank you so much Mr. Jain.
02 May 2017
Period of holding shall be reckoned from the date father purchased flat for the purpose of determining whether gains are short term or long term. but indexation will be applied only from the year in which property was received by way of gift.
Message likes :
1 times
02 May 2017
Thank you Mr. Abhishek Goel.
02 May 2017
Amazing clarity. thanks once again
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Average Cost Of High Quality Diamonds
- Regarding ITR filing with more value than showing in AIS/TIS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
