30% OFF on all Law Courses until 10th of July. Enroll Now. Use Code: July30
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Syed Chennai (student)     29 October 2016

Will gifting be considered as benami?

Dear sirs,

    I am planning to buy a flat. I will be getting the money as gift from my father's brother. He is a taxpayer, and he will be giving me all white money as gift. I found that this money is not taxable under IT act section 56. 

I may or may not repay him. So I am getting it as a gift.

But after I buy the flat (fully in my name), will the government look at this as a benami transaction? 

Please advice on this.


 3 Replies

Ms.Usha Kapoor (CEO)     30 October 2016

You are investing the money you got as  a gift from your father's brother who comes within the definition of specified relative is fully exempt from gift tax both in the hands of donor and donee. If you invest this gift money in buying  a single house for self occupation you'd not be subject to capital gainst tax or gift tax. However you rent out the proposed flat  to others and derive income as rental  income you would  be liable to gift tax.If you appreciate this answer please click the thank you buttonon this forum.Also  in the alternative you' be laible to income from house property.

1 Like

Kumar Doab (FIN)     30 October 2016

The donor may adjust the amount in his capitol.

The donee may adjust the amount in his capitol.

Preferably get the gift in writing.

Further consult you tax consultant also.


A walk alone (-)     31 October 2016

Please click thank you button for Ms Usha kapoor

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Start a New Discussion Unreplied Threads

Popular Discussion

view more »

Post a Suggestion for LCI Team
Post a Legal Query