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Pls guide about gift tax

Paramjeet Singh Gulati (Assistant) (221 Points)

20 May 2015

A mother in law wants to gift her flat Rs.50 lacs to daughter in law... secondly daughter in law wants to sell that flat to her brother for Rs. 25 lacs.

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 20 May 2015

If MIL gifts to DIL for inadequate consideration, then income from such property shall be included in the hands of MIL only as per clubbing provision u/s 64(1)(vi)

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 21 October 2015

Yes, As per section 64(1)(vi) of the Income Tax Act the income of a daughter-in-law from the assets transferred without adequate consideration by her father-in-law or mother-in-law is to be included in the income of the transferor.

But transfer of property before marriage, is outside the clubbing provisions of section 64(1)(vi) even if the property is transferred subject to subsequent condition of marriage or in consideration of a promise to marry.

Another option give money as loan then clubbing provision not apply ...