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Need info on Tax implications of Gifts

Tax queries 496 views 1 replies

hitendra bhatia

52 Points Joined June 2011

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. Thanks Hitendra Bhatia +91 90013 17333

Replies (1)

Guest

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.