Income tax implication for gift deed registered

Since the property is being gifted by a father to his son, there is no Income Tax Implication either to the father or to the son who is getting the Gift.

Thank you for your reply.

The gift deed is registered at Registration Office, Mumbai in March 2018.

If the gift deed is registered at the Co-Operative Housing Society in April 2018, what date of registration would be considered as the registration, for the legal purpose i.e. 2017-2018 or 2018-2019?

Which legal purpose you are saying?

For income tax purposes it is date of Registration with the Sub-Registrar's office.

For Society purposes, it is the date on which it is registered with the CHS.

Thank you Mr. R.Ramachandran for your reply.

I wanted to know about this for Income Tax purposes i.e. whether to file this property in the ITR for FY 2017-2018 or FY 2018-2019.

Hence the question.

Originally posted by : Ramesh Singh
	Q: "Whether to file this property in ITR for FY 2017-2018 FY 2018-2019"? A: ITR for FY 2018-19

Thank you, Mr. Ramesh, for your reply.

Did you mean Assessment Year (AY) 2018-19?

If not, then can you explain the reason that I need to file it in FY 2018-2019, since the transfer was done in 2017-2018?

Originally posted by : Ramesh Singh
	Reason can be given by Registrar of Co-operative society in accordance of the bye-laws. Gifted property shall come into existence when delivery & possession complete. Refer Sec. 3(c), 47 & 123 of Transfer of Property Act, 1882. Good Luck.

Mr. Ramesh, I thank you again for your reply.

So if the gift deed is also registered in the Co-Operative Housing Society by March 2018, then can I file the return in FY 2017-2018?

Originally posted by : Ramesh Singh
	Are you filling ITR for the first time? Get the helpline no. & FAQ (frequently asked question) https://incometaxindia.gov.in

Mr. Ramesh, thank you for your reply.

I have filed income tax before but I have not come across such a situation earlier, hence the need of help from this forum and esteemed members such as yourself.

According to Mr. R.Ramchandran, the date of registration with the registrar would be the date used for Income Tax Purpose, hence 2017-2018.

According to you (Mr. Ramesh Singh), it should be 2018-2019, according to Sec. 3(c), 47 & 123 of Transfer of Property Act, 1882

 

But according to sec 123, it states that

Transfer how effected  

123. For the purpose of making a gift of immoveable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.

32[ Notwithstanding anything contained in any other law for the time being in force, a heba under Muhammadan law shall be deemed to be a gift of immoveable property for the aforesaid purpose.]

For the purpose of making a gift of moveable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.

Such delivery may be made in the same way as goods sold may be delivered

Will I be able to assume that since the gift deed has been signed and hence the transfer is effected, delivery (possession) is not mandatory and hence the process is complete? And this, in turn, should allow me to file the return in 2017-2018?

The liability if any is to start from date of registration..

You may also post at group website CAClubindia

For society charges refer to Bye laws, Rules framed in accodance with Model Bye Laws 

Originally posted by : Kumar Doab
	The liability if any is to start from date of registration.. You may also post at group website CAClubindia For society charges refer to Bye laws, Rules framed in accodance with Model Bye Laws

Thank you, Mr. Kumar, for your reply.

I greatly appreciate your reply to this query.