Hello everyone,
If I made gift to my mother out of Sale Consideration received when I sold the house property
Whether it is allowed as Diversion of Income?
What is the right way to get deduction for the gift made by me?
Thank u in advance
2 Replies
ANUBHAV VISHNOI
(-)
(150 Points)
Replied 29 October 2012
Dear Sudhakar,
If u have sold a house property and there is a capital gain, then you have to pay tax on that capital gain.
Second thing you can gift any amount to your mother from sale consideration. After gift that amount will belong to your mother and any income from investing that money will be income of your mother not yours, and your mother will have to pay tax on that income.
It is better to make gift deed to avoid any complications.
So if your personal income is high then it is good way to gift money to your mother and save tax.
Thanx.
Saket Sinha
(Student)
(129 Points)
Replied 29 October 2012
Hiii
If there is a capital gain on sale of house property then invest it according to sec54 and deuction under the same section . Now if you invest in another residential house property then you can gift it to your mother . This would be exempt in computing tha taxable income of your mother as it is gift from relative.
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