Transfer of immovable property
Ajit N Katkoria
(Querist) 22 October 2016
This query is : Resolved
My elder brother's wife (bhabhi) is holding a land/plot solely in her name since 1987. Since, they do not have children, my Bhabhi wants to transfer 50% of the said plot into my name. But, I was advised to transfer or gift the rights to my elder brother first and pay stamp duty & related fees and then let my elder brother give gift this 50% to me by gift deed. Is it possible? what is the tax implications -gift tax/ capital gain tax to my Bhabhi or my elder brother or to me?
Please advice and thanks in advance.
Ajit K.
Rajendra K Goyal
(Expert) 22 October 2016
Tax on income of gifted property would be added in the income of donee.
Discuss in detail with local tax consultant or post your query in CA club of India.
Ms.Usha Kapoor
(Expert) 23 October 2016
There is no gift tax Either on donor or Donee so long as the donee doesn't invest the gifted cash o kind in some FDs or MFs etc. If the donee invests in FDs or Mutual Fund the income derived of Fds(interest income) ) and income generated out of MFs(profits would be taxable in donee's hands.If the brother transfers you 50% of gift of donated by his wife to her husband then also there wont be any capital gains tax liability or gift tax. If you investin FDS OR MFs OR IN SOME OTHER SOURCE THE INCOME DERIVED BY YOU ON SUCH INVESTMENTS WILL BE TAXABLE BY WAY OF-GIFT TAX. if YOU APPRECIATE THIS ANSWER PLEASE CLICK treating it as income from other sources. THE THNAK YOU BUTTON ON MY PROFILE.
Dr J C Vashista
(Expert) 23 October 2016
Taxation consultant may advise you.
