Section 47(iii)

If d property is immovable requires a valid gift deed & such deed needs to be registered.

Thanks a lot sir.... but i wanted to know if there is any clause regarding specific persons only to whom the gift is exempt or it can be to anyone...

gift is taxable in the hands of recipant.if received from relative than it is exempted

Originally posted by : ashwani agarwal
	Thanks a lot sir.... but i wanted to know if there is any clause regarding specific persons only to whom the gift is exempt or it can be to anyone...

Pls refer to d defintion of relative which mentioned  under

EXPLAINATION TO PROVISO u/s 56(vi)

 to such persons if gifted then its exempted.

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	Originally posted by : ashwani agarwal Thanks a lot sir.... but i wanted to know if there is any clause regarding specific persons only to whom the gift is exempt or it can be to anyone... Pls refer to d defintion of relative which mentioned  under EXPLAINATION TO PROVISO u/s 56(vi)  to such persons if gifted then its exempted.

So if a person has gifted a property to a non relative then it will be taxable in the hands of transferor as capital gains( BECAUSE IT IS NOT EXEMPT U/s 47(iii) ACCORDING TO YOU) and taxable in the hands of the receiver u/s 56(2)(vii). Same prpoerty will be taxed two times?

Please Clarify.

See u are actually mixing two sectons which are actually differnt in operation

Sec47 (iii) deals wit tranaction wher its not a tranfer whn actaully ther is a trf bt not as per IT-ACT so it will not be chargeable to tax under d had capital gains.

Sec 56(2) basically deals wher any property is gifted without adequate consideration .

How its two time taxed if u selling it thn ull chargeable under head capital gain

bt if u giving it as a gift thn its taxable under d head income from other source to the reciever ant not transferor???????

Thats what i want to know that if i am gifting it to a non relative then will it be exempt under 47(iii) or not.....

If not, then what are the conditions u/s 47(iii) to make transfer as a gift exempt???

under section 49(i) cost of previous owner is taken when a property is reccived in gift inheritance etc so when you git it to the brothers son you wont be taxed any thing but the cost of aquisition to you will become cost to borthers son, but as brothers son is not a relative for IT act he will be taxed for recciving that gift, there is nowhere written directly that gift wont be treated as transfer but as your cost becomes cost to subsequent owner due to gift given by you you wont be taxed at all and dont go near section 47 to not to treat it as a transfer it is definalty a transfer but as tushar said as it is taxed as gift to some one else it is exempt to you 

A slight deviation to the above question, under section 56(2), is gifting of immovable property to brother's son taxable (i presume it would be gift tax)?

If yes, what is the rate of tax?

Is it borne by the donor or donee?

A humble request for a quick response.