Gift of immovable property from non relative

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

 

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. 

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.

CASE: GIFT OF MY INHERITED LAND/PLOT(FROM MY LATE MOTHER) TO MY WIFE'S BROTHER'S DAUGHTER FOR HER MARRIAGE-IS IT EXEMPT FROM TAX? PLEASE CLARIFY.

 

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