Gift

Save Share

This query is : Open

DHAVAL (Querist)

13 March 2013 "A" purchased a plot of Rs.5,00,000/- in 1995.
And constructed commercial building of 4 floor on that plot , construction exp was Rs.15,00,000/-. construction was made during FY 2011-12 ad 2012-13

Now if he gift 3rd and 4th floor to his son "B" where in gift deed he showed market value of 3rd floor Rs.17,11,000/- and 4th floor Rs.18,11,000/-.

Is he liable for tax ????????

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

13 March 2013 If the gift paid in kind or cash at any amount between the relatives is not taxable in both the hands.

Hence in your case father given gift to son. Father and son relation ship is relative as per the Income tax act. So gift taken place in between the relatives so there is no tax liability either in the hands of father or son.

But in future if son sold such gifted property then capital gain tax will arises. But now no tax liability is is fully exempted.

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

DHAVAL

DHAVAL (Querist)

13 March 2013 so in this case there is no tax liability in hands of father

and what will be the value of property in books of son ?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

13 March 2013 Which value mentioned in the gift deed is the value of property in the hands of son.

OM SAI SRI SAI JAI JAI SAI

DHAVAL

DHAVAL (Querist)

13 March 2013 ok thank you

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now