16 June 2011
Dear Experts, Please solved my following query :
Case History :
One of my clients father has property in Main Mumbai. He purchased the property in 1962. The value of that property for this period is nearly Rs. 54,000/-. In the year 2001 building was redeveloped by Builder and my client father received bigger flat compared to previous one without paying any money. In current year April 2011 he sold the property with the total consideration of Rs. 2.10 lac. He distributed that said consideration among his three children each getting around Rs. 70 lac. My client, received, as a share of Rs. 70 lac from his father.
He purchased the property out of this proceeds.
My question is as follows : 1) Whether my client is liable the pay gift tax on Rs. 70 lac he received from his father. Please give details with explanation if possible. 2) Whether the property purchased by my client from the proceeds of gift will attract clubbing provision of income tax. Thanking you,
CAclubindia
