Gift to relative instead of sale

This discussion explores the tax implications of transferring property to a relative. While selling property incurs capital gains tax, a gift deed might avoid this for the giver. However, the recipient may still face tax implications under Section 56(2)(vii) of the Income Tax Act, though gifts between specified relatives are typically exempt. The consensus is that while such arrangements can be structured to appear genuine, it's crucial to seek professional advice to avoid potential tax avoidance issues and litigation.