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Gift of immovable property from non relative

Neil Gore (other) (33 Points)

08 January 2018

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.

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4 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 08 January 2018

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

Dipanshu arora (CA Final Student) (418 Points)
Replied 08 January 2018

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)
Replied 08 January 2018

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.