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Satish N. Sharma (Proprietor)     19 February 2012

Does gift deed attract capital gain? if yes, how much?

My mother intends to gift the residential premises in my and my brothers name.  This premises was brought by my dad who expired and the flat was transferred in the name of my mother.  Now my mother while she is alive wants to transfer the said flat in our names.  What is the tax liability which we are supposed to bear? Does it attract Capital Gains?  We two brothers are legal heirs of the property as per the nominations done by our father and our mother.  We have another brother and a married sister, whom our mother doesn't want to give the property, hence the gift deed?  The flat has been in our mothers name for the past 16 years.

Thank you,

Satish NS


 4 Replies

Vineet (Director)     20 February 2012

No capital gains  on gift. Since gift from relative as defined in section 56, no tax on gift either.


You can safely proceed with gift transaction. Check for stamp duty as leviable in your state. In Maharashtra gift from close relatives is charged stamp duty at concessional rate of 2%.

Shailesh Kr. Shah (Advocate)     29 February 2012

Gift deed by your mother to you, does not attract income tax u/s 56(2)(vii) of the Income Tax act.

C. P. CHUGH (Practicing Lawyer)     29 February 2012

Gifts are no more taxable.  However certain gifts exceeding prescribed limit of Rs. 50000.00 are taxable unless those are received from specified persons.  in your case Gift from mother fall within the category of specified person and hence it is not taxable either under Gift Tax Act or under Income-tax Act.

R.V.RAO (retired)     27 February 2014

agree with sri chugh, Sri shah and sri veneet.

no gift tax between relatives.

gift does not attaract  caital gaintax .

stamp duty and regn.fees( on gift)  beng state subjects vary from state to state.and max.of one or two percent of value of gift.

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