Hello to all members,
I have a question regarding the tax provisions of gifts.
I am going to get a property (land with house constructed on it) worth Rs. 30 Lakhs from my friend, property and both of us are in India only.
I need to know what will be the tax implications’ of the same under gift tax and income tax act.
Who will have to pay the tax and if yes how much it will be.
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You will be taxed under the head Income from other sources.
Taxable Amount : That amount which your friend invest in your property on construction.
Tax rate : slab rate + ed cess
Since the property will be constructed, if u receive different amount in different FY taxability would arise in the FY in which the amount is received.