Please clarify me whether the gift of immovable property received by the children from the partnership firm in which their parents are the only partners will be exempt as a gift from relative u/s 56 of Income Tax Act,1961
Rajeev
(Student)
(83 Points)
Replied 08 January 2012
The definition of the term 'Relative' does not include Partnership Firms. Parents are the only partners is not relevent for exemption. Also refer Sec 56 (2)(vii).
Aman Mehta
(CA Qualified CMA Final and CS Executive)
(63 Points)
Replied 08 January 2012
Yes, rajeev is right. Further if you want gift to be exempted then show that the gift has been given to kids by the parents (i.e. any one) in their individual capacity and not as partners of the firm. But in order to do that the immovable property should be transferred to one of the partner (i.e. in their individual capacity) at the value in which it is appearing at firm's books.
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