debasish (prop) 30 December 2013

Pls. advice tax on property

sir

we are four brothers.we have a house in the name of our late father.now we have decided to handover our property to a promoter and we will take four flats in return.to simplify legal procedure,we have decided that my three brothers will gift the house in my name. now I will negotiate with promoter.after finishing the project, promoter will hand over four flats in my name. I ,then, will gift three flats to my brothers.

now, i like to know is there any complication for me from income tax angle?

PLS. ADVICE ME SOON.

best rgds.

Debasis das

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1 Replies

R RAJAGOPALAN (ADVOCATE) 31 December 2013

YOUR QUERY: is there any complication for me from income tax angle?

REPLY:1. For getting the property gifted by the brothers, there is no gift tax liability, as they are all 'relatives'under Explanation (e) (i) (B) to Section 56(1)(vii).

2. However you may be liable for tax on the Capital Gains from the transfer of the property to the Promoter-Builder.

Why not get a specific Power of Attorney from the brothers, empowering you to negotiate with the Promoter on their behalves, etc.?