Defination of brother under section 56

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Neha Goplani (Querist)

31 December 2012 If we gift an immovable property to our cousin brother (i.e our father's real brother's son)is that too exempt or only gift from our father's son (i.e our real brother exempt)?

CA Anand

CA Anand (Expert)

31 December 2012 Cousin Brother are not covered under Sec 56. Hence not exempt

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 January 2013 A. If you really want to GIVE immovable property to your Cousin, it can work in the following manner-
1. First Gift the Property to your uncle.
2. He then , will give to his son.
.
2. If the Stamp Value of the property, if taken as sales consideration and does not result into significant capital gains,
Charge Re. 1 consideration from your cousin and sale it to him.
.

CA Anand

CA Anand (Expert)

02 January 2013 But Sir, As this involved 2 tranfer then the cost to tranfer would be very high then. At each level stamp duty is to be paid. Pls through some light on this.

Neha Goplani

Neha Goplani (Querist)

05 January 2013 Dear CA Paras Bafna Sir & CA Anand,
Though I completely agree with your above suggestion but i wish to know the legal section backing up that cousins are not covered under the defination of brothers as reffered to in the meaning of relatives under the exemption list given u/s 56(2)(vi) of incometax act 1961.
thanks in advance

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