Article explains Income Tax Treatment of Immovable Property Received as Gift Without Consideration or for Inadequate Consideration, Any property other than immovable property received Without consideration of For Inadequate Consideration and all those gifts which are fully exempt under Income Tax under Section 56(2)(X)
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1. Cash:
If aggregate value is less than Rs.50000 than nothing will be taxable. If value exceeds Rs. 50,000, the whole amount will be taxable.
2. Movable Property as Gift:
a) Without consideration:
Where any person receives, in any previous year, from any person or persons any property other than immovable property without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property will be taxable in the hands of receiver.
b) For Inadequate Consideration:
Where any person receives, in any previous year, from any person or persons any property other than immovable property for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration.
The excess differential amount will be taxable in the hands of receiver.
3. Immovable Property as Gift:
a) Without Consideration:
Where any person receives, in any previous year, from any person or persons any immovable property without consideration and the stamp duty value of which exceeds fifty thousand rupees then in such case, the stamp duty value of such property will be taxable in the hands of receiver.
b) For Inadequate Consideration:
Where any person receives, in any previous year, from any person or persons any immovable property for a consideration, the stamp duty value of such property as exceeds such consideration, if the amount of such excess is more than the higher of the following amounts:
(i) the amount of fifty thousand rupees; and
(ii) the amount equal to five per cent of the consideration
The excess differential amount will be taxable in the hands of receiver.
4. Some Exempt gifts
If any gifts are received in following situations or from below mentioned people then those gifts will be fully exempt under Income Tax.
Any sum of money or any property received:
- from any relative; or
- on the occasion of the marriage of the individual; or
- under a will or by way of inheritance; or
- in contemplation of death of the payer or donor or
- from any local authority or
- from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or
- from or by any trust or institution registered under section 12A or section 12AA; or
- by any fund or trust or institution or any university or other educational institution or any hospital or other medical institution or
- by way of transaction not regarded as transfer under clause (i) or clause (iv) or clause (v) or clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause (vic) or clause (vica) or clause (vicb) or clause (vid) or clause (vii) of section 47; or
- from an individual by a trust created or established solely for the benefit of relative of the individual.
- any compensation or other payment, due to or received by any person, by whatever name called, in connection with the termination of his employment or the modification of the terms and conditions relating thereto
Note: In the above-mentioned points the term Relatives means
– Spouse of Individual
– Brother & Sister of Individual
– Brother & Sister of Spouse of Individual
– Brother & Sister of either of the parents of Individual
– Any Lineal ascendants or descendants of the individual
-Any Lineal ascendants or descendants of the spouse of the individual.
Below is a comprehensive list of Donors as per definition of relative under I.Tax Act (Hindi connotation has also been mentioned)
| List of Male Donors | List of Female Donors |
| Father (Papa or Pitaji) | Mother (Maa or Mummy) |
| Brother (Bhai) | Sister (Bahin) |
| Son (Beta or Putra) | Daughter (Beti or Putri) |
| Grand Son (Pota or Potra) | Grand Daughter (Poti or Potri) |
| Husband (Pati) | Wife (Patni) |
| Sister’s Husband (Jija) | Brother’s Wife (Bhabhi) |
| Wife’s Brother (Sala) | Wife’s Sister (Sali) |
| Husband’s Brother (Dewar) | Husband’s Sister (Nanad) |
| Mother’s Brother (Mama) | Mother’s Sister (Mausi) |
| Mother’s Sister Husband (Mausa) | Wife’s brother’s wife (Sala Heli) |
| Father’s Brother (Chacha or Tau) | Father’s Brother’s Wife (Chachi or Tai) |
| Father’s Sister’s Husband(Fufa) | Father’s Sister (Bua) |
| Grand Father (Dada, Pardada) | Grand Mother (Dadi, Pardadi) |
| Daughter’s Husband (Jawai) | Son’s Wife (Bahu or Putra Vadhu) |
| Spouse Father (Sasur) | Spouse Mother (Sas) |
| Spouse Grand Father (Dada Sasur) | Spouse Grand Mother (DadiSas) |
| Brother’s Wife (Bhabhi) | Mother’s Brother’s Wife (Mami) Husband’s Brother’s Wife (Devrani or Jithani) |
Republished with Amendments
Author Bio
Hi
I want to gift Rs500000 to Chacha’s Bahu for her daughter’s (chacha’s grandaughter) insurance. Please advise the tax implications
SIR
CAN A FATHER (PROPRIETOR) GIFT MACHINERY TO SON (PROPRIETOR) .
WHAT CONSEQUENCES IN INCOME TAX AND FOR GST PURPOSE(ITC)?
Does my brother’s sons ( NRIs through ONR Accounts)are considered as “RELATIVE” for gift under LINEAR ASCENDENTS/DECENDENTS OR DIRECTLY. If not is there any alternative.
If I donate Rs60,000/- to my grandson on his birthday & 75,000 as marriage gift in the same AY. Can I deduct 1,35,000 from my gross income? Can my grandson include this amount in his income. Please clarify.
In case of marriage, father in law gifts money to either daughter or son in law
Suppose if father in law gifts 50lakhs then will there be any tax on it??
Dear Sir,
I DONATE MY PROPERTY TO HIS BROTHER SO WHICH AMOUNT IS TAXABLE FOR THE PAYER AND WHICH AMOUNT IS TAXABLE OF RECEIVER IN INCOME TAX SO PLEASE REPLY AS SOON AS POSSIBLE.
THANKING YOU,
WITH REGARDS
Dear Sir,
I DONATE MY PROPERTY TO HIS BROTHER SO WHICH AMOUNT IS TAXABLE FOR THE PAYER AND WHICH AMOUNT IS TAXABLE OF RECEIVER IN INCOME TAX SO PLEASE REPLY AS SOON AS POSSIBLE.
THANKING YOU,
WITH REGARDS
WHETHER FOSTER CHILD IS COVERED UNDER RELATIVE CLAUSE OR NOT?
sir, I have a doubt,
IF I have give the money to my younger brother (he used this amount for purchase of land or building, Rs.7,00,000/-), it is taxable amount for me or my brother ?
Is there any tax implication in hands of trust or trustee -If Trustee give his immovable property to the trust as gift???
Sir pls reply
Dear TaxGuru,
Greetings!
If an individual gifts a property to a non profit entity are ether party, the donor/ the recepient subject to any tax?
Thanks! Best regards abhijit
As Mama is relative for bhanja on same weather bhanja is relative of mama ie can mama take gift from bhanja
Hi
can daughter of an individual make exempt gift to her father’s sister’s daughter
I pay Rs.15000 to my parents every month from my salary as a gift. I woudl like to reduce this from my taxable income and include it in their taxable income. How to do that while filing my returns on the incometaxefiling portal?
can my sister husband (jijayaji) to me (sala) and my younger brother (sala), and my father (sasurji) rs. 100000 eacgh
Dear Expert,
Is the amount / gift received by HUF on the occasion of marriage of individual is exempt U/S 56(2)(vii)
I am planning to build a commercial building on the plot owned by me and for this my son who is working in USA at present wants to transfer money to the tune of 80 lakhs. How to go about this process legally so that we do not have to pay any gift tax nor income tax on this money transferred to my account.
Sir,
It is regarding Gift tax. I would like to gift some amount to my Mother-in-law. If she, in turn, gifts the same amount to my Wife, whether I should consider clubbing of my income. Please reply.
I have intend to gift Rs.15 lakh to my daughter for purchasing of flat at bangalore.
The above transaction is attract any gift tax under income tax act prevailing in India.
Please clarify the said matter.
Thanking You
Central govt took over my naani’s field for building road and gave her the compensatory amount after deducting the taxes.now c wants to give the amount to me ie her naati .My question is whether the amount is taxable or not?
Will Gift to Masis daughter not exceeding 50000 in a year attract any tax?
one employee of a company died .some friend also co-employees decided to provide support to his wife & children(Minor) of deceased friend by giving money to them.The amount contributed is more than rs 500000 .What is taxability in hand of deceased wife.
can a son gift to his nana(mother father)
my uncle(my father’s sister’s husband (fufa ji). can my fufa ji gift me property amounting rupees 53 lakhs and what should be the tax i have to pay? weather immediate tax or at the time of selling the property? doner and the reciever (me) both are indian and the property also in india.
Can my younger Brother’s Wife can gift to my wife of Rs. 1,00,000/- (One Lacs)
Yes, MIL can gift to her son in law subject to valuation should be less than 50k , If transferred without considertation then entire value of such property subject to the sdv of this property is taxable.
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Donor / donee can be either Resident or Non resident
take it in cheque. if you are thinking to take it in the form of gift then you can’t take but as a unsecured loan with regular payment of interest then you can in your business.
Interest income would be taxable in the hands of Donor subject to deduction 80TTA currently.
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