father sold the land for 75 lacs a
nd gifted son 50 lacs.
will son be liable to pay tax on 50 lacs?
Also, if son is not liable to pay tax then what all documents will be required to substantiate the exemption .
pls respond
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gift from father
Replies (2)
no, son won't be required to pay tax. however, father need to pay capital gains tax on land and going forward any income getting generated from the land will be taxable in the hands of son. the document will be completion of gift deed
First capital gains liability of father has to be checked. If the land sold was rural agricultural land, no tax liability over father; otherwise its taxable. Father should also file return.
For Son any amount of gift from father is tax-free u/s. 56(2)(x) of IT act, but the transfer should be through banking mode; and a gift deed to be made.
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