Gift deed execution and income tax


Dear all,

 

I need suggestion from you all on below matter:

My father-in-law is retired(59 years) and wants to invest in property with my husband.Property would be in name of my husband and mother-in-law.He wants to give gift 25 lakhs rs to my husband.He got this money post retirement from Govt..My father in law gets monthly pension of 30 K too.

Below are my questions:

Is it really required to execute a gift deed in this case?

By executing gift deed,will my father-in-law get any tax benefit?

For Donee(my husband),is the amount transeferred as gift will come under his taxable income?

Thanks in advance

 
Reply   
 
Prop

01. Execution of gift deed is necessary in this case.

02. Your father in law will not get any benefit under Income Tax Act by giving gift. Yes,tax on  income, ifany, your father would have earn by not giving gift of this money will not be there.

03. There will not be any itaxable income in the hands of your husband.

Please feel free for further clearification.

 
Reply   
 


retired officer

My friends son is non resident indian staying in USA . He is on job visa.

he likes to avail housing loan in india for a purchase of residential  unit.

he pays the income tax in US on his salary there.he has no income in india.

he has no pan card . he had been to US as a stuedent and got the job

after completion of his studies.

my question is  how it will affect him if  he takes the loan and lets out the residential unit

on rent. and also how it will affect him  on account of capital gain tax if he sales the property in future .

according to him he has to show all income around the world to pay  income tax in US.

Pl guide.

thanks

 
Reply   
 
pm

Better way is to give amount directly to property developer by father in-law .

Property can still be registered in ur husband and mother in-laws name

He will not have to execute any gift deed for such transaction

Your father inlaw would have got money only after tds so the money is tax free

Gift from father to son or spouse is not taxable so no outgo to your husband or mil

 
Reply   
 
retired

gift by father to  son being relative is tax exempt

But, instead of gifting money to son by a gift deed,, F I L as advised pay to builder and get house consrtucted in india on behalf of NRI son.

 the house and the housing  loan both  can be made in the name of son in india.

 
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