Ancestoral property gifted by two brothers to other.
C.A Alok Mukherjee
(Querist) 23 July 2012
This query is : Resolved
Dear All,
An ancestral property is gifted by two elder brothers to younger brother for which stamp duty is payable for 13500. so far my understanding, this can be registered by way of gift deed and also stamp duty paid is not subject to income tax since less than Rs 50000.
At the same time if younger brother wants to gift some money to the elder brothers by way an affidavit that is also not taxable in the hands of the elder brothers as income since it is within the blood relation and benefit can be obtained in section 56(2) of the income tax act.
Is there anything wrong in my understanding? Please correct me.
Secondly gift of money by younger brother to elder brothers can it be in form of deed and registered or it will be in form an affidavit on Rs 50 stamp paper and notarized? Please help whether by any law any liability is missing.
Anirudh
(Expert) 23 July 2012
Dear Mr. Alok,
The best way to elicit an appropriate answer to any query is : (i) first state the complete facts - who originally owned the property, how the property travelled down line to the present owners - who are the present owners - and what is proposed to be done with the property by whom.
(ii) Then to ask pointed queries.
It is not a good practice to assume somethings by yourself, and then ask answer only to certain portion which according to you, you are not sure. Please remember, the other person who has to answer your query, does not have the complete and full facts with him.
C.A Alok Mukherjee
(Querist) 23 July 2012
Dear Mr. Anirudh,
We are three brothers. After my father's demise the ancestral property an old house originally belonged to my father we three brothers are the co-owners now. My elder brothers want to transfer there share to me as gift. For this a stamp duty around Rs 13500/- is payable.
In turn, i also want to gift some money to them from my love affection. So far as my understanding is i can gift money to them and that will not be taxable because it is gift within the same blood relationship as exempted under section 56(2) of the Income Tax Act. We will execute gift of money by way of an affidavit duly notarized or if require a deed is also to be made.
My worry is whether above transfer of immovable property and money in form of gift, and not in form of "sale",Is it legally correct in all respect?
It will be a great help if i get some valued advice from you.
