gift

Querist : Anonymous (Querist) 12 December 2010 This query is : Resolved
My brother & me share a residential property jointly inherited from father. If I transfer my share by way of gift to him and he gifts money to me & my family members in turn equal to market value will it amount to sale attracting stamp duty on market value and capital gain tax to both of us under IT Act?

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Devajyoti Barman (Expert) 12 December 2010
Gift deeds do attract staamp duty with regard to the relation between the donor and the donee. Only the rate differs from one state to another. In west bengal it is o.5% if it is between the close blood relations like father and son, husband and wife etc. Else it is like a sale deed @ 6%.

s.subramanian (Expert) 12 December 2010
yes

A V Vishal (Expert) 12 December 2010
will it amount to sale attracting stamp duty on market value

Ans. Gift of immovable property attracts stamp duty on the market value. Rates differ from state to state. Currently it is 3% in A.P additionally registration charges are 0.5%, registration of gift of property is compulsary. However, for gift of money only a letter from the donor stating that the amount is gifted is sufficient there is no stamp duty or registration for gift of money.

and capital gain tax to both of us under IT Act

Ans.There is no gift/income tax on gift between brothers.

Raj Kumar Makkad (Expert) 13 December 2010
I agree with Vishal

Advocate. Arunagiri (Expert) 13 December 2010
I also agree with Mr.Vishal.

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