Gift
This query is : Open
28 July 2014
whether the provisions of sec-47(iii) will be applicable irrespective of to whom a gift is made or it is applicable only in case the gift is made to a relative
Sandeep Dharar
(Expert)
28 July 2014
Gift made to relatives r only exempted from tax. All other r taxable.
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28 July 2014
1. Section 47 specifies transactions which are NOT regarded as transfer for the purpose of capital gain.
2. Section 47(iii) specifies that transfer of CAPITAL ASSET by way of gift is NOT treated as transfer. Accordingly capital gain will NOT arise in the hands of the transferor (person making the gift)
3. The gift can be made to ANY person (relative or non-relative).
4. The taxability in the hands of the recipient will be governed by Section 56(2)(vii). If the gift is received from a relative it is NOT taxable. If it is received from a relative it is taxable subject to limit of Rs. 50,000
2. Section 47(iii) specifies that transfer of CAPITAL ASSET by way of gift is NOT treated as transfer. Accordingly capital gain will NOT arise in the hands of the transferor (person making the gift)
3. The gift can be made to ANY person (relative or non-relative).
4. The taxability in the hands of the recipient will be governed by Section 56(2)(vii). If the gift is received from a relative it is NOT taxable. If it is received from a relative it is taxable subject to limit of Rs. 50,000
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28 July 2014
sec-49 specifies that if an asset is obtained by way of gift,cost in the hands of the receiver shall be taken to be the cost in the hands of the previous owner.
sec 56(2)(vii) specifies that ,if an immovable property is received by way of gift and the stamp duty value of that property exceeds rupees 50000,such stamp duty value shall be taxable in the hands of the receiver.
in that case what will be the cost allowable as deduction on subsequent sale of such property( whether it would be the amount which have already been taxed u/s 56(2)(vii) or the cost to the previous owner as specified u/s 49)
sec 56(2)(vii) specifies that ,if an immovable property is received by way of gift and the stamp duty value of that property exceeds rupees 50000,such stamp duty value shall be taxable in the hands of the receiver.
in that case what will be the cost allowable as deduction on subsequent sale of such property( whether it would be the amount which have already been taxed u/s 56(2)(vii) or the cost to the previous owner as specified u/s 49)
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