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).