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Tax on Inheritance
An ancestral house is valued at Rs. 1 crore on the death of the father. Now one of the son is taking the house and paying Rs. 50 lakhs to his brother as his share in the house. Will the son paying the amount of Rs. 50 lakhs be liable to Tax. Whether it will be considered as Inheritance or Gift to the other son.
Replies (3)
If there is no will, and only 2 heirs.
then giving 50 lakhs won't attract any tax.
but proper documentation needs to be maintained .
theses are my prima facie views based on the facts disclosed.
then giving 50 lakhs won't attract any tax.
but proper documentation needs to be maintained .
theses are my prima facie views based on the facts disclosed.
This is quasi family settlement. No tax on gifts between sons on 50 lakhs or renunciation of right in property.
Thank you very much for your replies. Since there is no Will left by father, the 2 sons have mutually agreed on the amount of the ancestral house.
What kind of documentation do you suggest. Should an agreement be made for the transfer of Rs. 50 lakhs and whether this document should be registered or can it be prepared on a stamp paper of Rs. 100 or 500.
Is stamp duty required to be paid for making an agreement for renunciation of right in property and how will it be shown in Income Tax returns.
Please guide.
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