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Sale of House property

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student
334 Points Posted on 12 March 2021
Can a father sell his self earned property to his son for less than market value or inadequate consideration...?

For example Father bought property in 2010 at 1 lac. Now it is worth 10 lacs. Can father sell it to his son for the same 1 lac...?

What are the tax implications.. CG tax, IFOS..?

Thanks guys
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On 12 March 2021 at 20:45 Report
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Chartered Accountant
24588 Points Posted on 12 March 2021
Yes father can give inherited property to his son.
It is not taxable
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On 12 March 2021 at 21:35
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17264 Points Posted on 13 March 2021
Father can give his bought property by way of gift to son. Father can receive 1 lakh gift from his son.
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On 13 March 2021 at 09:45
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Partner
1072 Points Posted on 14 March 2021

U/S 50 C father has to pay tax on capital gain computed with 10 lacs as full value of consideration.

There is no exemption for transfer to son U/S 50C.

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On 14 March 2021 at 00:54
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Partner
1072 Points Posted on 14 March 2021

section 56(2)(x) is not applicable due to father son come under he definition of relative per proviso to 56(2)(x).

Hence no tax to son for 10 lac property buying for 1 lac.

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On 14 March 2021 at 00:57


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