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Gift of immovable property from non relative

Tax queries 1018 views 4 replies

Neil Gore

other

33 Points Joined July 2016

Mr X is not related to his friend Mr Y. X wants to gift a flat to Y by a registered gift deed. Govt price of the flat is more than 10 Lakh. The stamp duty for the gift deed is more than Rs 50,000. What are the income tax liabilities for the doner and donee?

Thanks.

Replies (4)

Sarath Rajendran

Nil

2791 Points Joined November 2017

mr.y liable to pay tax on the value of the flat

Dipanshu arora

CA Final Student

418 Points Joined September 2014

Seller would be liable to pay tax under the head capital gain. In case Sale value as determined under as per stamp valuation and sale consideration exceeds Rs 50000/- than difference would be chargeable to tax under the head income from other sources as per section 56 of the act in the hand of Purchaser.

Anurag lohiya

Bara bazar

262 Points Joined June 2013

Mr. Neil Gore,
Tax liablity in hands of Mr. X:
Since this shall be covered by section 47 , hence not regarded as transfer. Therefore no capital gains in hands of Mr. X.

Tax liability in hands of Mr. Y:
Mr. Y have to pay tax on Rs. 10,00,000 (FMV) by virtue of section 56(2)(x) under the hand income from Other sources.
COA in hands of Mr. Y shall be Rs. 10,00,000 ( Section 49(4)).

Hope this will meet your requirement.

Regards.