Does wealth tax applied for inherited property?
Sonia
(Querist) 14 December 2015
This query is : Resolved
We have a property of 25 cents which is in the name of my father in Kerala.
My father passed away and we haven't changed the name to anybody as it is.
Now we have a members of three includes mom,my brother and me as the successors.
As per my moms decesion,she wants to change the name of the property to both children equally as she is ready to relinquish her privilage in the property and wants to make a gift deed (dhananishchaya aadharam).
She wants to settle all the things on her presence.
My brother is an overseas citizen and i am settled in Bangalore.
I want to know that
.does we have any gift tax while receiving the property?
.For inheriting the property,is there any wealth tax?if so,what will be the percentage?is there any exceptions?
It is an urban area not rural.
.Is it applicable to the overseas citizen?
Kindly help me on this matter.
Regards,
Sonia Antony
P. Venu
(Expert) 14 December 2015
Your mother may gift her share to the children or she may relinquish share in a partition deed executed by all the legal heirs. Such a deed involves only nominal stamp duty. You take the help of a licensed document writer.
There is no question of any wealth tax or gift tax.
Rajendra K Goyal
(Expert) 15 December 2015
Your mother can gift her share to both of you or she can relinquish her right.
No gift or wealth tax.
Sonia
(Querist) 15 December 2015
Referring the information above,
does me and my bother have to pay any wealth tax as we are receiving/inheriting the property from our father?
In the case of mom,hope we don't have to pay any gift taxes by receiving the property from the blood relatives.
Thanks for informing.
T. Kalaiselvan, Advocate
(Expert) 25 December 2015
Firstly understand the concept that the property shall be partitioned and all the three inherit their respective shares, in that if mother wants to relinquish her share she can do so by executing a registered release deed insofar as her share in the property is concerned and not for the entire property.
The property so inherited by you and your brother will not attract wealth tax or gift tax, just draft a proper partition deed and get the deed registered o that the inheritance is legally completed.
