Relinquishment of right and section 50c
This query is : Resolved
11 April 2015
Dear Sir,
In case of an immovable property, there were 4 co-owners. The share of each is indeterminable. One of the brother relinquishes his right in the property and executes a deed for the same. Stamp duty is paid on registry of this deed based on the value determined by the registrar.
He relinquishes his right without receipt of any consideration and to avoid any hassles. He does this to attain mental peace.
Now, he received NIL consideration.
Will there be any tax liability considering a deemed consideration u/s 50C ?
In case of an immovable property, there were 4 co-owners. The share of each is indeterminable. One of the brother relinquishes his right in the property and executes a deed for the same. Stamp duty is paid on registry of this deed based on the value determined by the registrar.
He relinquishes his right without receipt of any consideration and to avoid any hassles. He does this to attain mental peace.
Now, he received NIL consideration.
Will there be any tax liability considering a deemed consideration u/s 50C ?
11 April 2015
You said they were brothers, then it will be treated as gift to relatives and exempted from tax. Section 50C not applicable.
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