Income tax/ capital gains tax/ gift tax

Dear Friend,

You will not have to bear any tax liability as the gift amount is from your father. But in such a case your father will have to pay tax on capital gain from sale of property. This capitla gain tax can be avoided if he purchases a residential property in his name. If he purchases the property in his name and then trasnfer the same to you as gift, then in accordance with the amount invloved none of you will have to pay taxes. Transfer through gift is chargeable under stamp duty and registeration charges. But this again depends on one state to another. 

Thanks a lot Raphael for your early reply. The property to be sold is residential property & the floor/property to be purchased is residential property. In our state i.e. New Delhi, the stamp duty & registeration is 7%. Is there anyway that this stamp duty can be avoided?

Thanx & kind regards

Thanks a lot for your early reply. The property to be sold is residential property & the floor/property to be purchased is residential property. In our state i.e. New Delhi, the stamp duty & registeration is 7%. Is there anyway that this stamp duty can be avoided? Now my father says that he wants to transfer the portion of old house in my name through family settlement deed & then I sha'll sell that portion & purchace a new builder floor/ appartment for own living i.e. me, my wife & my son. Will I have to pay any kind of tax or stamp duty if do that. Thanx & kind regards
 

Dear Harpreet,

In this situatuion you will have to check with your lawyer in delhi as to whether the settlement deed invokes any stamp duty. Once the flat is settled in your name then you may avoid the capital gain on the sale of such flat by investing in the new property(residential) proposed to be purchasd.

I beleive the stamp duty of settlement/gift deed will be at a lower rates than the normal property sale stamp duty. It varies from state to state hence consult with your lawyer.

Respected Sir/s thanx a lot for your early reply Now my father wants to go for family settlement deed as he thinks that after getting the property through gift deed I will ask for more. Even though I'm willing to sign relenquishment deed for rest of the property. I want to know that, is Family settlement deed challangeable ? And what time does it takes to execute a family settlement deed ? One lawyer told me that it takes 1 - 1/2 yrs to get it executed in court. My father also says that he will go for Gift & Relenquishment deed through court only, if he has to eventually, is that possible ? Is gift deed better option or family settlement deed ? thanx & kind regards