Capital gain tax

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Dear sir, I have received a plot from one of my friend as gift deed in 2017 which he bought in 1998. now I sold that plot in 2017 itself. My query is do I need to show both income from other source tax as well as capital gain tax or only capital gain will be sufficient for tax computation. please advice
Replies (12)

Both. Income from other sources over  the gift received..

While LTCG liability over the LT capital gains by sale of plot.

Thank you sir. But is it possible instead of showing income from other sources can I get benefit on capital gain tax by reinventing the amount in some other property

No,The amount of gift received will be taxed under head 'IFOS'

While you can get the benefit of period of holding of previous owner, when you sell the property, thus the gains over the sale will be under LT capital gains. At the same time cost of aquisition will be taken as that of the donor and not the present cost.

Thank you sir. So I will skip the IFOS and show LTCG benefit in my ITR using section 54f.

No. the liability over the gift receipt under 'IFOS' cannot get transferred to capital gains !! That you will be required to pay along with LTCG.

But  LT capital gains liability over the indexed cost of aquisition (as per the cost of donor) can be claimed exemption u/s. 54F by purchase of new house property, if eligible.

Only Taxable under Capital gain

As per section 47(1) gift is tax free transfer,So neither it is taxable in your friend's hand not in your hand.

For computation of capital gain

deduct index cost of acquisition from sale value and pay capital gain tax as per rate.

For calculation of cost of acquisition you require to read sec 49(1) which says you will take purchase cost of your friend. For period of holding you will require to refer Sec 2(42A) which says You will count period of holding from the date your friend purchase the plot.

For any query you may also message me on 7059758724
dear sir thanks for your clarification. is gift tax free only from relative or also from friend.

Only from 'Relatives' as specified u/s. 56(2) of I T act.......  while taxable when received from friend.

thank you sir. I received this as gift on my marriage but registered it after one year of marriage due to some financial issues. can we get rebate by showing it as gift on marriage

If you have any registered document confirming the gift on the occassion of marriage, you can consider the same, final transfer procedure can be completed in due course......

the only document I am having is gift deed performa signed by friend and me along with two witness on date of marriage but not any authority. will it be considered

No. It has to be certified by any judiciary.


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