Gift made to Daughter....
This query is : Resolved
07 February 2011
A person has received a sum of money from the sale of his shop, now he wants to make a gift to his daughter with that sale proceeds. This gift is made other than an occasion of her marriage.
What is the treatment in the hands of that person of such sale proceed? Whether he has to pay tax on the total amount recd. less cost or on the amount left from the deduction of amt. of gift.
What is the treatment in the hands of that person of such sale proceed? Whether he has to pay tax on the total amount recd. less cost or on the amount left from the deduction of amt. of gift.
07 February 2011
1. Sale of Shop:
He has to pay tax on Capital Gains arising on sale of shop. It depends upon period of holding. In case it is held for more than 3 years then shop will be a long term capital asset and the seller is allowed indexation benefit in such cases.
In short first the person has to pay tax on Capital Gains or Profits. He may save taxes also by making investment.
2 Gift to Daughter
He can gift any amount to his daughter at any point of time . Only thing to be kept in mind that if the daughter is unmarried and minor , income arising from gifted money will be added back in the hands of the father or mother, who ever is having higher income.
He has to pay tax on Capital Gains arising on sale of shop. It depends upon period of holding. In case it is held for more than 3 years then shop will be a long term capital asset and the seller is allowed indexation benefit in such cases.
In short first the person has to pay tax on Capital Gains or Profits. He may save taxes also by making investment.
2 Gift to Daughter
He can gift any amount to his daughter at any point of time . Only thing to be kept in mind that if the daughter is unmarried and minor , income arising from gifted money will be added back in the hands of the father or mother, who ever is having higher income.
Message likes :
2 times
07 February 2011
Daughter is married, now will the full amt arise from the sale of the shop after deduction of indexed cost be taxed in the hands of the Assessee?
07 February 2011
indexation benifit can be availed if it is a long term capital asset ie., held for not less than 3 years fro the date of aqusition.less the transfer expenses like commission ect.
in case married daughter the income araising on gifted amount will not be taxed in your hands
in case married daughter the income araising on gifted amount will not be taxed in your hands
Message likes :
1 times
07 February 2011
Daughter is married, now will the full amt arise from the sale of the shop after deduction of indexed cost be taxed in the hands of the Assessee?
Yes the amount will be taxed.
Capital Gains Tax can not be saved by gifting the amount to married daughters. It can be saved either by investing in residential house or in Capital gain bonds by following underlying conditions.
Yes the amount will be taxed.
Capital Gains Tax can not be saved by gifting the amount to married daughters. It can be saved either by investing in residential house or in Capital gain bonds by following underlying conditions.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Foreign inward in ITR
- TAX AUDIT QUESTION
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
