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Property Gift followed by sale

Tax planning 137 views 1 replies

K Wlliams

Investment Professional

1 Points Joined March 2021

Hi,

I am an Indian living in Australia and looking to sell a property I have in India. For an efficient tax planning, I have been sugggested that I can gift the property to a blood relative of mine and then he can sell it subsequently. My question is, can my relative sell the property immediately or with in a short span after it has been gifted to him? Is IT dept/Govt likely to check the transaction and ask questions on it?

Thanks

Kunal

Replies (1)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Joined November 2019

Yes being on living in foreign you have to follow RBI Guidelines for transferring property in India subject to that the property you are transferring should be bought by you while living in India. Transferring property to your relative will not effect as it will be gifted but subject to conditions mentioned above. But when your relative sells the property IT Department may check the transactions and Capital Gains arises to your relative