Transfer of property without any tax liability

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This query is : Resolved

CA Rakhi Govil (Querist)

09 February 2012 Hello Experts,

A and B are co owner of a property.A housing loan was taken by B on this property which have been paid fully by B.Now B wants to transfer this property to A without any tax liability.
My queries are as follows:
1) If A and B are in blood relation,will there not be any tex liability if he gifts this property to A?
2)If A and B are not in blood relation then will there be any tax liability if B gives this property to A through relinquishment of title? what is the concept of relinquishment of title?
3)Is there any other way of transfer of property in the above mentioned situation where tax liability is nil?

Thanks in advance....

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

09 February 2012 1. LIABILITY TO TAX CAN BE AVOIDED ONLY IF THEY ARE IN A RELATIOSHIP WHICH IS REFERRED TO IN SECTION 56(2)(VII)
2. GIFT WILL ATTRACT TAX IN THE HANDS OF DONEE IN TERMS OF SECTION 56(2)(VII). RELIQUISHMENT OF TITLE IS ALSO TRANSFER FOR THE PURPOSES OF CAP GAINS. IN THAT CASE TAX WILL BE LEVIED IN THE HANDS OF RELINQUISHER
CA MANOJ GUPTA
JODHPUR
09828510543

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

09 February 2012 1. B has taken a housing loan. Care must be taken for Section 80C(5)(iii), subject to that
.
Reply
1). This gift is not treated as income under Section 56(2)(vii).

But, clubbing provisions of income may have tax-impact on the B's income.

Blood relation is a wider term and that's why the specific reply could come out if exact relationship between A & B is clearly narrated.
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