Rakesh Ahuja (Inspector) 06 October 2011

Gift tax in respect of blood relation

What is rate of gift tax in Delhi if the gift deed is between father and son.

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Sankaranarayanan (Advocate) 06 October 2011

Gifts received by an individual/HUF are not taxable which have been received from the following :-

(i) Money or Property received by from a relative, or Relative means:-

(a) spouse,(b) brother or sister,(c) brother or sister of the spouse,(d) brother or sister of either of the parents,(e) any lineal ascendant or descendent,(f) any lineal ascendant or descendent of the spouse,(g) spouse of the person referred in clause (a) to (f).

(ii) Money or Property received by an individual on occasion of his marriage, or

(iii) Money or Property by an individual/H.U.F., under a will or by way of inheritance, or

(iv) Money or Property received in contemplation of death of the payers, or

(v) Money or Property received from any local authority, or

(vi) Money or Property received from any fund, foundation, university, educational institution, hospital, medical institution, trust, institution referreed u/s 10(23), or

(7) Money or Perperty received from any trust or institution registered u/s 12AA. [Sec, 2(24) (xv) read with Sec. 56(2)(vii)].

"Property" means immovable property or movable property with some condition.

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Anumita Sarkar (Tax Advisor/Litigator) 06 October 2011

First of all gift tax haad been abolished long back and secondly, any gift which is transferable amongst blood relations/ relatives is not taxable. Mr. Narayanan has already discussed the provision of sec-56 (2) of the I.T. Act in detail. You may execute a gift deed on Rs. 50/- stamp paper for the same and get it notarised.

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