Reg: capital gains and gift tax

This query is : Resolved

Aashish (Querist)
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14 June 2013 Dear Experts ,
My client has recieved gift as money from their relative using which they purchased a house property.
For the purpose of tax
1.What will be the tax on money they received as gift?If any,
2.Cost of acquisition will be of the house will be the purchase value?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 June 2013 Tax on money received as Gift will depend upon the fact that whether each of the person from whom gift is being received, is
whether a relative under Section 56(2) (vii) ?

If the donor is not a relative as per IT, the aggregate amount received from such non relative donors if exceeds 50000/- then such amount will be treated as income of the recipient.
.
Cost of Acquisition :Purchase Cost plus Registration Expenses.
.

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