Journal entry for transfer of property

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This discussion addresses the correct journal entry for transferring property via a gift deed, where no money changed hands between the parties. The father and one son gifted their shares to another son. The advice provided suggests a journal entry to reflect the gift, with the gifted asset debited and the recipient's capital credited. Any taxes paid by the recipient for the transfer are also noted.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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30 November 2021 Dear Sir,

One of my client has prepared a Gift deed and transferred their share in property.

There was a Sale agreement between 3 persons in which house property share was divided between father and his 2 sons.

Now the father and his first son gave their share of property to the second son by preparing the gift deed. All the taxes were paid by the second son as property is now in his name.

I need help regarding what entry should be passed for transfer of property as no monetary transaction took place and taxes were paid by the person to whom property is transferred.

Please help me in this matter.

Regards,
Divyesh Jain