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Gift Tax

30 March 2010

What would be the income tax on a gift made of an indian property by a foreigner grand mother to a foreigner grand daughter? Does this gift deed need to be made on a stamp paper?

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5 Replies

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 30 March 2010

As Per My Knowledge,

This Gift is Exempt........Bcoz There is No Relevancy of Resident Status in This Case.

&

Regarding Stamp Paper , Yes This Should Be on Stamp paper...

Amir (Learner) (4016 Points)
Replied 30 March 2010

Dear Lalit Sir,

Gifts amongst relatives are not taxable, So in the present case Gift from Grand parent will not be taxable

Relatives are defined as -

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);]

As far as Gift Deed on stamp paper is concerned, I would say advisable to have hassel free life...:)

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 30 March 2010

If the transfer is of a property in India then stamp duty needs to be paid on the transfer of the property from the granmother's name to the granddaughters. The stamp duty rates will differ from state to state. However the same is exempt from any income tax and the gift deed i. e. the declaration of gift should preferably be on a Rs. 100/- stamp paper though not compulsory.