Share in property

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A query regarding a wife's rightful share in her mother's property, which was registered under her brothers' names. The brothers have agreed to transfer her share, and the user is seeking advice on whether a gift deed or a sharing agreement would be more tax-efficient. The discussion touches upon potential Capital Gains Tax (LTCG) implications and explores the gift deed as a potentially more advantageous option for receiving money against the property share.

Shailendra Kumar

Shailendra Kumar (Querist)

12 July 2025 Sir,
Someone please suggest
My wife had a share in her mother's property
Which was got registered by her brothers in their name. Now they agree to give her share.
Should we make gift deed or sharing agreement papers to save income tax.
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

12 July 2025 Release Deed can be made, but LTCG based on the difference of purchased cost and today's circle rate will be applicable.

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 July 2025 but why would LTCG apply if they can just gift it?

Shailendra Kumar

Shailendra Kumar (Querist)

12 July 2025 Thanks sir
If they agree on gift deed, then we don't have to pay on LTCG. So, gift deed is better option for taking money against share in property?

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