According to the new proposal of the Union Budget 2009-10, any property received from a non-relative where the value is in excess of Rs 50,000 in a particular year will be considered as income in the hands of the recipient.
Earlier, gifts in the form of cash from non-relatives were exempted up to a limit of Rs 50,000 a year (if sum exceeds Rs 50,000, then entire amount is eligible for being taxed).
While this limit remains unchanged, the key change proposed is aimed at bringing in non-cash gifts into the tax ambit.
Earlier, gifts in non-cash form (like shares and securities, jewellery, archeological collections, paintings and gold), even if they were in excess of Rs 50,000, were exempt from any tax in the hands of the recipient.
In case of immovable property, the value as determined by the stamp duty ready reckoner will be considered for tax purposes. However, an area of concern remains, which is the valuation part.
With this amendment fair market value’ of a property other than immovable property could become an area of contention — for example, there could be valuation issues in case of a property, like a piece of painting. However, though the CBDT would prescribe the rules for valuation of other properties, there could be disputes on valuation. In case of immovable property, the issue is that it would tantamount to double taxation (Section 50C taxes capital gains in the hands of the seller, while the new proposal would tax the difference between stamp duty value and consideration in the hands of the purchaser).”
In case of transactions involving immovable property but wherein a consideration is involved, the amount eligible for being taxed would be the difference between the stamp duty value and the consideration paid (for other movable property, the ‘fair market value’ would be considered as against stamp duty).
However, the proposal provides for some exclusion, which includes receipts on occasion of a marriage or by will or inheritance or from certain specified authorities (educational or medical institutions among others).
my father purchased an plot at cost of Rupees 90,000/- in year 1994.In year 2010 He gifted it to my mother at market value of Rupees 27 lakh.if the plot is still kept vaccant,Than is their any issue of capital gain or gift tax on my mother or father
my father is having residencial property in mumbai. he wants to transfer the property on my name by way of gift.i have one younger brother. i would like to know whether i have to pay any tax? secondly can you suggest any other procedure to avoid tax. thanking you . waiting for your mail.
I purchased house of 4000SQF and constructed 4 story commercial complex each floor consisting average 2000SQF. I want to gift 2nd and 3rd floor to my son and daughter in order to get ride of service tax problems. I am a muslim family. Is registration is necessary for such gift if so what are the expenses i have to bear. Is my son or daughter has to pay any tax such as gift tax upon such propoerty. Kindly clarify
I bought a flat in pune in yr 2010 got possession. the flat was registered on me and my father’s name since iam nri i made him co owner do that he coudo the documentation etc. i cleared the loan by funding myself and now the flat is free of mortgage. now my father wants to transfer his share to my wife. how will this be fone? I guess gift deed. how.much stamp duty will be applicable? How can i avoid stamp duty?
Is it possible to add spouse name to home registration in India ? how much will it cost ?
My husband wants to gift a site to my daughter. the value we paid of the site is about rs.300000]- this amounts to gift
from a father to a daughter without taking any consideration.
please let me know is she to pay any tax by adding the value of the site to her income for that particular financial year?
janaki
can i get a gift of ‘CAR’ from my friend and can i avail exemption of Rs. 50000 as per the CBDT Notification dated 30 sept. 2009?
CAN SOMEONE AVAIL THIS EXEMPTION IF HE GETS GIFT OF CEMENT WORTH 1 LAKH RUPEES FROM HIS FRIEND?
can a son give gift to his father,will taxable in father,s income
X received a gift of immovable property from her mother’s brother’s daughter in 1991. The gift deed is being documented and registered now in February 2010.
Will a gift tax be payable by X? Or can the gift deed mention that possession was handed over in 1991 and hence can gift tax be avoided?
i have received a gift from my brother of his share in the commericial premises at mumbai via gift deed registered on 23.09.09 will this be taxable?the share certificate transfer will be effected after 01.10.2009.
If take gift cash/cheque more than Rs 50000/- should be treated as income or exempt in income tax