Gift Tax

Querist : Anonymous (Querist) 05 June 2010 This query is : Resolved
Sir, Thanks for the quick response. As i have written that present market value is about Rs 35 lakhs on which stamp duty is payable. However due to love and affection it was sold at RS 5 lakhs to my nephew.
Sir My question is that Value for the Stamp duty is taken for the Income tax purpose. Can the donee claim the balance amount as "Gift" for exemption purpose.
regards
Riya

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Vineet (Expert) 05 June 2010
Stamp duty is leviable under Indian Stamps Act and not Income Tax Act. Stamp duty shall be levied on the market value of the property as determined by the stamp duty authorities and the duty is levied as per prescribed rate which varies from state to state (in some states, the stamp duty rate on gift is nominal).

As already replied in your seperate query, there is no tax incidence in the hands of nephew as the GIFT comes from you an specified relative. In your hands the sale consideration is treated as Rs 35 Lakhs and long term capital gain shall be calculated accordingly.

soumitra basu (Expert) 07 June 2010
I agree.

Jagmohan Rawat (Expert) 08 June 2010
If you want 6/7th portion of the property to be considered as gift it should be evidenced by gift deed as immovable properties gifted should be supported by gift deed. Further if you mention sale consideration of the whole property as Rs.5 lack without preparing gift deed for the 6/7th portion it may go againt your intention at the time of assessment.

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