Gift deed and capital gain

No capital gain for old houses. Get advice of an accountant.

Gift by mother to son of immoveable property is out of the ambit of Capital Gain as it is not considered as transfer under Capital Gain of IT Act, whereas since this is a Gift of immovable property you have to get it registered and the required Stamp Duty is to be paid.

The question of capital gains come, if at all, only when you receive cash (money). There is no capital gains tax on a transferee of a property. Previously there was gift tax. But to the best of my knowledge gift tax has been abolished.

There is no Gift Tax but stamp duty has to be paid on registering the property in your name

My mother had owned a residential  property in Delhi since 1983. Which she gifted  to me in Feb 2011.

I paid the stamp duty and got it registered in my name.  Subsequently, I sold the same property in August 2011.

Do I owe any Capital Gain on that?

If yes, can I save the capital gain by  buying the new property with the same amount?

Can I invest part-amount in the new property and deposit the balance in the Capital gain a/c in bank?

please advice. thanks

Yes you have to pay long term capital gains tax on difference of sale price (August 2011) and indexed cost of property in 1983. The tax rate is 20%.

Yes you can save tax by investing the capital gain amount in a new residential property. No need to block the entire sale price as the capital gains account give a very low return.

Rest depends on facts and amount involved.

NO tax is payable on gift received form relative or Any property recievd from parents by way of willingness/ heritance.

May be You r liable to pay amount for stamp duty or transfer charges

Any gift received after 1-10-2009 is taxable in the hands of the receiver. The value of the gift will be treated as income under “Other Sources” and will be added to other taxable income, if any, and hence the gift becomes liable to regular income tax.  However a gift received from mother is exempted from tax.

Mr. Jyoti Kundra obtained the gift in February, 2011. It was not taxable at the time of receipt of the gift as it was from his mother.

If it was gifted by a non-relative, the value would have been considered as income for the year 2010 – 11. If so logically the date of acquisition should be considered as February, 2011 and any capital gain on account of its sale in August, 2011 would be short term capital gain. Whether it will be still so, if gift tax was exempted in February, 2011 or it should be considered as long term capital gain indexed from the date of acquisition by his mother, which was 1983, has to be ascertained.

Before 1-10-2009 and after 1-10-1998 there was no gift tax. Then the cost of acquisition of the previous owner based on the date of acquisition by the previous owner, in this case the mother,  would have been the cost of acquisition.

It can also happen that tax on short term capital gain is less than indexed long term capital gain.

As you are receiving property as a gift from your mother, Income Tax is not attracted. Just a stamp duty on market value will have to be paid.