Sale of House property

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
Replies (4)
Quick Summary
This discussion explores whether a father can sell his self-earned property to his son for a price significantly below market value. While a gift of inherited property is generally not taxable, selling a self-acquired property for inadequate consideration triggers capital gains tax for the father, calculated on the market value (Section 50C). However, the son typically won't face tax implications on receiving the property from his father due to their familial relationship under Section 56(2)(x).

Yes father can give inherited property to his son.
It is not taxable
Father can give his bought property by way of gift to son. Father can receive 1 lakh gift from his son.

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.

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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