Transfer of property to cousin
This query is : Resolved
03 May 2022
Dear Sir,
One of my client is transferring property to his cousin by way of Gift. There is no money transfer in this case nor any sale has been made.
I want to know will there be any long term capital gain impact in such case to either of the parties and whether any tax needs to be paid in this transaction.
Please help me in this matter.
Regards,
Divyesh Jain
One of my client is transferring property to his cousin by way of Gift. There is no money transfer in this case nor any sale has been made.
I want to know will there be any long term capital gain impact in such case to either of the parties and whether any tax needs to be paid in this transaction.
Please help me in this matter.
Regards,
Divyesh Jain
03 May 2022
While there is a specific exemption to tax on gifts received from specified relatives, 'cousin' does not fall within the definition of 'relative'. Accordingly, gift received from your client shall be taxable in cousin's hands.
Entire value of the property is taxable.
Capital gains tax not applicable.
Entire value of the property is taxable.
Capital gains tax not applicable.
03 May 2022
But there is only transfer of ownership. No sale has taken place. How will the tax calculation be done since there is no capital gain. I feel it must be taxed only when the cousin sells the property.
03 May 2022
Transfer of property without considering attracts tax.
Section 56(2)(x) provides that following receipts shall be taxed in hands of any person where received from any person or persons on or after 01.04. 2017 during any previous year. (a) Any sum of money exceeding Rs. 50000 in aggregate without consideration.
Section 56(2)(x) provides that following receipts shall be taxed in hands of any person where received from any person or persons on or after 01.04. 2017 during any previous year. (a) Any sum of money exceeding Rs. 50000 in aggregate without consideration.
03 May 2022
Ok Sir. Thanks for your valuable response.
03 May 2022
Check added reply also.
03 May 2022
Yes.. Will see the section
06 May 2022
Is there any way to save this tax by investing in infrastructure bonds or somewhere else as it is available incase of Capital gain on sale of property.
Please advise.
Please advise.
06 May 2022
Do two transfer between one to father 's brother and further transfer to his son.
Check all such transfer falls within relative under income tax.
Check all such transfer falls within relative under income tax.
06 May 2022
Ok, Thanks a lot Sir for your guidance.
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