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)
Page Contents
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
It will be taxable in your husband’s hand. Thank you.
E-mail – theintegrateservices@gmail.com
In my opinion, Taxability of Interest income of Rs. 24,500.00 would be in the hands of Donor – Thanks to clubbing provision.
If HuF received above sum of money inheritance then it won’t be taxable.
Your uncle can gift you in his individual capacity but not as a KARTA of their HUF., In my opinion – I am also not sure but i replied based on my logical discretionary power.
Contact : for more information , we would like to help you in this matter.
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In my opinion, The contention of I.t. department is right. Gift received by the Relative is exempted but Nanaji is not covered up within the definition of relative.
No doubt there is required clarification degree of generation up to what you can benefit but that benefit you can take to argue and get 0 penalty
maternal grand father not covered up.
For more guidance and discussion :
Contact :
CA Bhavin Shah
E-mail: theintegrateservices@gmail.com
In fact, If your wife is active businesswoman then you may show it as a pure unsecured loan on the basis of relation and trust and by that way you can avoid tax.
Otherwise prima facie certainly you would get notice from i.t. department.
E.g. Take an example of case of Mr. Shahrukh khan and Gauri Khan
Contact us for more discussion and service:
CA Bhavin Shah
The Integrate Services
If brother and his spouse gift to his sister and her spouse, means brother and his wife of a girl to that lady as well as her husband. in such case it would be taxable in the hands of that lady as well as husband if such value above limit. , in my opinion.
I may understood your question wrongly. you may write us again
Contact
E. theintegrateservices@gmail.com
CA Bhavin Shah
Yes, James – Your father can gift you. It’s absolutely possible. but in such case the entire value of such property equivalent to the amount of stamp duty valuation would be taxable.
Contact
E. theintegrateservices@gmail.com
CA Bhavin Shah
Yes, it can be transferred but before that we need to ask you exact facts of your case. We are helping people by creating Offshore companies / trust in Mauritius
Kindly write us :
For Tax & technical discussion:
Contact
E. theintegrateservices@gmail.com
CA Bhavin Shah
First of all – no one indian company would accept it. Further, if you are working abroad, then you may do like that but it would be taxable in their hand and you have to create wrong consultancy biz for them.
If you are not willing to do that then it would unsecured loan to your parents – accounting treatment
and in Taxation- Interest earned on that F.D. would be taxable in your hands – Thanks to clubbing provisions.
For Tax & technical discussion:
Contact
E. theintegrateservices@gmail.com
CA Bhavin Shah
It would be taxable because Your sister’s son is not covered up within the definition of Relative. Your sister can gift you but not your sister’s son.
For more clarification & discussion:
Contact for more discuss & Chat –
E. theintegrateservices@gmail.com
CA Bhavin Shah
I have doubt plz Clarify…….
section 56 (Gift) mai Immovable Property (Land, Building or Both), but Sir Donor ne Third Person ko Hotel Gift kiya usme Land or Building include hai but sir Donee ke hands mai tax Calculation mai only Land and Building but not Hotel Furniture Taxable nahi hoga….kyu ke Section 56 Mai immovable property mai Only Land & Building Taxable Hoga…..NOT INCLUDE hOTEL FURNITURE IN HAND OF DONEE….
Thank you for this wonderful clarification and explanation of the above relationship on transfer of gift.
I have a doubt please clarify:
My Bhanja ( Sisters son ) purchased an agriculture property in 2008 and now he wants to gift that same property to me ( mama ). What would be tax implication. Can you clarify whether it is taxable or non-table.
What if I transfer my salary to my Parents accounts (Joint Bank account) and they create fixed deposit of that money. What will be the tax implications on interest earned on fixed deposit?
If a relative has huge salary income say 4-5 crores, can it be transferred to other family members, for converting black into white money.
My father purchased a property in 21/5/2010 worth of 283000 and he registered the property to me through sales deeds not through gift, in sales deeds property value is written as 718000 on 30/4/2013. Income notice has come regarding capital gain tax. Is there any way to prove that there is no money transferred in this case and it’s been registered to son by father and if so will it save the capital gain tax?
Dear Sir,
If brother and his spouse gift a immovable property to his sister and his spouse, where stamp duty value is more than 50k. So what are the tax liability to brother, sister, and there spouse? Please guide.
Dear sir
If bother and his spouse want to gift a immovable property to his sister and his spouse which is 8500000 Rs. Where the. Stamp duty value more than 50k. So what are the income tax liability to brother, sister and their spouse.?
Dear sir
If bother and his spouse want to gift a immovable property to his sister and his spouse which is 8500000 Rs. So what are the income tax liability to brother, sister and their spouse.?
If i gift 13 Lac to my wife and she purchased a property from it . is it taxable ? how she treat the property in her balance sheet?
My maternal grandfather (Nana Ji) had gifted his shop to my wife in Aug 2014 and at that time market value of the shop was 15.59 lakhs. He paid stamp duty also on 15.59 lakhs. Here I also want to clear that my wife is full time home maker and has no extra source of income.
1: Does my wife have to pay income tax on this gifted shop( i.e 15.59 lakhs)?
According to my CA, this property is tax free because as per IT rules this comes under ” Lineal ascendant of spouse” category, under section 56 income tax act1961 which is tax free.
But surprisingly 4 days before I have received notice from It office and today I have a meeting with IT Officer and they clearly mentioned that they can not consider my maternal grandfather (nanaji) and my wife in Lineal Ascendant of spouse category ( for the shop gifted by my nanaji to my wife). They are asking for law number/Income Tax rule no. for the same in which it may be clearly mention that gift received from husband’s nanaji is tax free.
Could you please help me to know the law no/ Income Tax rule no. for the same.
Looking forward for your help.
Can My KAKA HUF GIVE GIFT to Me
Sir,
MY HUF HAS RECEIVED RS. 750000/- AS GIFTS FROM RELATIVES DURING THE F.Y. 2014-15 RELEVANT TO A.Y 2015-16. THERE IS AN INTEREST INCOME OF RS 24500/- ON FDs THAT HAS BEEB MADE OUT OF THESE GIFTS. WHAT IS MY TAX LIABILITY FOR THE A.Y. 2015-16 ? I AM YET TO FILE MY ITR FOR THE A.Y. 2015-16. PLS ADVISE AT YOUR EARLIEST.
RGDS.
UTSAV
Can I gift Rs 80000 from my salary account to my adult daughters saving account (first account holder herself & second account holder my self) every month to meet out fee of medical & engineering colleges for a period of about 5 years. They deposit this amount in a Recurring account.Please clarify is it as per income tax rules.
ThankS
Respeected sir,
Can I gift Rs 80000 from my salary account to my adult daughters saving account (first account holder herself & second account holder my self) every month to meet out fee of medical & engineering colleges for a period of about 5 years. They deposit this amount in a Recurring account.Please clarify is it as per income tax rules.
Thanking you
RAKESH PAREEK
RPAREEK1963@GMAIL.COM
Please guide……….
Post retirement my husband has transferred money into my account which exceeds Rs. 50,000. I have made investments in FD, Mutual Funds etc. I do not have any other source of income other than from these investments.
Following are my doubts:
1) So as I understand, the amount transferred by him into my account will not be taxable in my hands as it is gifted by my spouse.
Am I right with the interpretation of Law in this regard?
2) I also want to make sure that this amount will not get clubbed in my husband’s income.
3) In whose hands will the interest on the investments will be charged to tax? Will it be clubbed in my husband’s income?
Thank you!
can i take Rs 1 lakh in cash from my broter. what record i will need to maitain for explanation.
can i accept rs 1.00 lakh cash gift from my brother. will i get exemption under csection 56(2) of Itax Act
the Naana wants to “gift” to her Daughter’s son.
can “Naana” gift “nawasa”(daughter’s son)? what is the tax liability in such a condition and who will pay and how much? Naani’s age is around 62 years.
–
Kindly reply
My son got married in March 15. How much of Amount I can gift him that is tax free ? Can this be transferred to My HUF account, as my son is one of the member ? Who can gift for tax free amount to marrying person and how it can be used for HUF capital raising ?
Mohit Parikh
as per Section 56(2)(viia) Does Firm includes LLP as well???/
Naani( mother’s mother) residing in Delhi had purchased a property in the last quarter of the year 2002 for Rs. 1.65000/- rupees.
She sells that said property on a hihger rates for e.g. Rs.9 lacs today.
She purchases another property for her own use as she is not having any property for her living purposes in Delhi. So, she purchases another property in Delhi for her own use. she purchases it in Rs. 9 lacs.
Now, immediately, after purchase of the said property, the Naani wants to “gift” the new purchased property to her Daughter’s son.
can “Naani” gift a house to his “nawasa”(daughter’s son)? what is the tax liability in such a condition and who will pay and how much? Naani’s age is around 62 years.
kindly advise.
if donor is mother and donee is daughter, and she gifts rs20000 pm ie 120000 pa
is this donation be able to reduce the total taxable income of donor. Eg 600000 pa is mother’s taxable income. will it now be 480000 or same 600000.
In other words
Will the tax liability of donor be affected.
if i give land to my wife as on 15-4-15, SDV is 49000 and further transfer as on 2-6-15 SDV is 49000 all gift is without consideration, what is tax liability on the hand of me.
dear Sir,
if i have to gift cash in excess of Rs 30,000/- to my wife on monthly basis ,is it exempted from tax ?
how can I claim the exemption in my tax liability …under which section .
samar
Can nephew ( Bhatiza )gift money
Tax free
Father gifts moveable property to his sons & daughters & wife, who will pay I Tax on the income generated by these gifted property.
FATHER GIVEN GIFT OF RS 250000 TO HIS SON’S WIFE, IS IT EXEMTED IN THE HANDS OF SON’S WIFE
can HUF OF GRANDFATHER MAY GIVE GIFT TO THEIR GRAND DAUGHTER
IS FREE & AND UPTO WHAT AMOUNT
PLS REPLY
sir, i gain rs 650000/ during marriage by father in law and his brother( WIFE UNCLE) by bank transfer. is it taxable? how i can save tax? how much i have to pay as a income tax?
what will be the income tax or capital gain tax on gift deed (my father in law to my wife)
In case of immovable property two points discussed above (at s.no.iv)still needs clarification please.
For donee :-
1) COA will be SDV (whose COA- if it means the COA of the donor which was in thousands at the time of acquisition and the value today has gone up in lakhs( the SDV is in lakhs) then what will be the SDV ?) Pl. clarify it.
2)what is the purpose of counting of holding period from the date of acquisition by donee. Pl. Clarify it for the benefit of common man who is not so expert in this field.
Which ITR to fill for HUF Returns & There is no income other than Gift from HUF Karta .
Where to show this GIFT from Karta on HUF return form.
Thanks in Anticipation!!
@ Ushaw Garg—–Thanks for the kind reply.
Dinesh Chandra:
No capital gain for donor, and no taxability for donee arises since donor is a relative of donee as per Income Tax Act. Thus naatee or damaad will not bear any tax in this case.
Further in case there is a time gap between date of agreement to purchase the immovable property and the date of registration of immovable property and due to this time gap the SDV of immovable property has increased as on registration date as compared to SDV as on date of agreement then the difference amount will not be taxable in the hands of recipient PROVIDED that at least a part of total consideration has been paid by any mode other than cash on or before the date of agreement.
E.g. Mr. Arman booked a 2BHK flat in Noida in the year 2009 for INR. 40 Lac and paid INR. 5 Lac as booking amount by way of a/c payee cheque. At that time SDV was INR. 35 Lac.
Now in 2014 he got possession of flat and got the registry done by paying stamp duty. However SDV at the time of registry was INR. 50Lac.
In the instant case nothing is taxable in the hands of Arman as he had paid advance money by way of cheque as on the date of agreement.
N R I OR OTHER BLOOD GROUP SHOULD DONATION GIVE US THAN WHAT IS TAX LIABILITIES AMOUNT Rs ABOVE 50000/
The article is well written informative and a must for a family who should know the tax implication of gift. Intentions are different and rules are a different. One is expected to follow the rules and regulations and ignorance is no excuse.
Appreciation to the writer of the article!
Can the administrator or anyone please send the format for calculation of capital gainsetc. on redevelopment in Mumbai. for individual flatowners in a coop society, who gets additional area, free of cost, some compensations and some corpus fund. The flatowner would have purchase the flat more than a decade back. also does he have to get the valuation done of old flat and new flat market value ? indexation etc.
Nice Info and Thanks for sharing
What will be the position if mother in law gifts agricultural land to her deceased daughter’s husband (damaad) or to daughter’s children (natee) where the stamp duty value is greater than 50k and COA is of 1986. What is PGBP ?