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Income tax suggestion needed for property sale

Surendra (Manager) (32 Points)

21 January 2019

Hi,

My FIL is selling off a property which is on his name, but given to my wife (50% share) as a gift during our marriage. As part of her share she will be receiving 60 lakh rupees. Question is does we need to pay double tax - one by my FIL during the sale, and two when he gives the money to my wife?

Thanks in advance,

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7 Replies

Lila (Job) (490 Points)
Replied 21 January 2019

From ur query i understand name transfer was not done at the time of gifting the property. Now, you can let you FIL pay tax on capital gain and then he can gift amount in this year to your wife. No tax on gift from father to daughter.

Surendra (Manager) (32 Points)
Replied 21 January 2019

Yes, the property was not transferred. Your answer helps.

So, is there any cap for the amount to be gifted from father to daughter (to avail zero tax benefits you mentioned)?

(Guest)

The is no cap for gift. As the gift is from a relative, there will be no tax for the daughter. Accept the gift by a cheque.

Surendra (Manager) (32 Points)
Replied 21 January 2019

Thanks, it helps

ADNAN AZIZ (2 Points)
Replied 22 January 2019

I did e-filing for AY 2018-19 (FY 2017-18), using ITR-1 form on Aug 3rd 2018 and also e-verified using aadhaar otp option Today I received mail from IT department as follows Dear Taxpayer, It is seen that a claim of refund has been made in the Income Tax Return (Acknowledgement No. 981241960030818) for Assessment Year 2018-19 filed by you on 03-AUG-2018. Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund. You are requested to submit your response in the e-Filing Portal post login by selecting either of the following options: The claim of refund is correct to the best of my knowledge and belief Return of Income is being revised wherein, correct claim of refund shall be made To submit the above mentioned response, please login to e-Filing portal, Go to Worklist->For Your Action-> Response for Refund Confirmation. Please verify the claims made in your Return of Income filed and submit your response accordingly. In case of any incorrect claims, please revise your Income Tax Return (ITR) . Please submit your response within 10 days of receipt of this e-mail. Please ignore this mail, if you have already submitted your response. Read more at: https://www.caclubindia.com/forum/income-tax-return-has-been-selected-under-risk-management-process-500040.asp Please advise on this.

(Guest)

If you are sure that you have claimed all deduction u/s 80C etc properly and claimed refund properly, submit response as

The claim of refund is correct to the best of my knowledge and belief

CA. Umesh kumar (ca.umesh11@gmail.com) (1465 Points)
Replied 01 February 2019

Many person saying if your claim is correct then you need not worry and select option one. Even if your claim is correct it should be presented in ITR logically/properly. Returns are processed by the computer at CPC Banglore and you are not sitting in front of computer to explain your view. You have to present your claim in a computer readable format. If it is not so it will be transferred to your jurisdictional assessing officer (Human Being) where you will sit in front of him and explain your view and submit your point. Many taxpayers files ITR or get the ITR filed with the help of so-called tax consultant and claim excess deduction under section 80C/80D/80DD/80DDB/80U/80G etc or claim housing loan or show low salary income to get refund. Employee should submit all his proof to his company so that these claims appear in his Form 16. Extra deduction should be claimed in exceptional cases where employee could not submit his claim before company due to any reason.. We should know that employer company also files TDS return and and computer cross check it with the return filed by the employer company and ITR filed by employee. Computer will not process the ITR If there is material difference between the two returns. If you have claimed refund beyond a reasonable limit you will get such notice and computer will not process your refund claim and your return may most likely to be transferred to jurisdictional assessing officer for manual scrutiny in which you have to submit proof. So those who have claimed unreasonable refund should file their revised return within given time limit otherwise they have to face problem in future.

For more information contact- Umesh Kumar, CA- 9717597230