Gift
This query is : Open
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 ????????
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 ????????
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
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
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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 ?
and what will be the value of property in books of son ?
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
OM SAI SRI SAI JAI JAI SAI
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