Gift

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SANDEEP AGRAWAL (Querist)

02 December 2017 MY Brother gifted me a Residential FLAT in 2012., which I incorporated in my books on market value Rs.32 lacs. I did not get it registered in my name to save 11 % stamp duty. approx 5 lacs. I want to know, what will be treatment of LTG, if sell this Flat now @ Rs. 50 lacs, without getting it registered in my name and recieve the payment in our joint bank account.
Kindly give detailed reply as I will have to undersand each and every aspect of it. Thanks.
Sandeep Agrawal 9993088860

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

02 December 2017 In case of gift of immovable property registration of gift deed is mandatory.
Depending upon the period of holding of the previous owner, capital gains may be long term or short term.
Cost of acquisition will be the cost to the previous owner who has acquired such property by modes other than gift or inheritance.
Indexation will be provided from the year in which the other person becomes the owner of property.
sale proceeds shall be equal to stamp duty value by registrar.

SANDEEP AGRAWAL

SANDEEP AGRAWAL (Querist)

04 December 2017 Thanks Sir. But the gift deed was not got registered, neither the property. By virtue of laws realating to gifts in Income tax, which says that any income from Gift will be deemed to be income of the Donor, so will the LTG taxable in the hands of the Donor of this Flat ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

05 December 2017 No, only in the hands of donee who has actually transferred the property as clubbing of income is not applicable in case of transfers made between brothers.

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