Immoveable property sale

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GIRISH (Querist)
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10 May 2015 1)can we gift a plot to the mothers brother without sale consideration of gift of love.
2) can we have sale proceedings lesser than the sub registered value if the buyer is my mothers brother

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 May 2015 1. The gift will be taxable in the hands of mother's brother.
2.1 The sales consideration will be taken as the stamp duty valuation for the computation of capital gains in your case.
2.2 If the sales consideration is less than the stamp value by an amount exceeding Rs.50000/- , the difference will be considered as income of mother's brother.
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VISWANIVAS

VISWANIVAS (Expert)
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10 May 2015 Your uncle comes under relatives list. You can gift him, and gift tax will not apply nit the value is taken as income.

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GIRISH

GIRISH (Querist)
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11 May 2015 1)can we gift plot to my mother?
2)can my mother gift the same plot to her brother?
3)does this is taxable in the hands of mothers brother

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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11 May 2015 I completely agree with CA Bafna ji's reply on all three points. While a gift received by bhanja from mama is exempt being relative reciprocal is not true especially in these kind of relations like mama bhanja or chacha bhatija since from the definition of relative it seems that the income tax act does not recognize bilateral relations so it is only one way.
However as for your second question you can gift to your mother and mother in turn may gift to her brother. Than it will not be taxable in the mama's hands.

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