Gift tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2011 hello friends...I have a query regarding gift tax..A flat is owned by my brother..we are thinking of investing in another property in his name..we cant have 2 property in his name as it would attract tax as income from house property for owning two properties..is it possible to transfer the flat owned by my brother to me and if so what are the tax implications regarding the same..Also kindly let me know that would it be appropriate to Draft a gift deed and get the deed registered stating that my brother is gifting me the said flat..would it attract any Capital gain tax...
Your quick response is appreciated...thanks..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

27 July 2011 In this case house gifted will not be deemed as transfer . (Section 49(1))
So no Capital Gain will arise.
*

It will not be treated as income under Section 56 as the receiver of gift is a relative.

*
The house can be transferred by a Deed of Gift, by paying the required Stamp Duty and Regi. charges to the property registrar's office.

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2011 thank you very much sir....thanks...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now