• My mother transferred her house to my wife - is it taxable

My mother transfer her house to my wife is it taxable in the name of my wife.
Asked 7 months ago in Income Tax from BARGARH, Odisha
1. Gifts given to relative is not taxable in the hands of recipient or donor both.

2. Not Taxable

3. Question is vague
Brijendra Tripathi
CA, Gurgaon
89 Answers
1 Consultation

5.0 on 5.0

Hi,

Thanks for the queries !

From the taxation point of view, gift received from relatives is not taxable in the hands of the recipient. However, the relative has been specifically defined under the act which includes the following people:

1. Spouse
2. Brother/sister
3. Brother/sister of Spouse
4.Brother or sister of either of the parents
5. Any lineal ascendant or descendent 
6. Any lineal ascendant or descendent of the spouse

Hence in your case, both immoveable property and the cash received from any of the relatives mentioned above shall not be chargeable to tax.

Further, there is no limit on the cash balance to be shown in any balance sheet provided the same should be justifiable to the tax officer. In other words, one should be able to prove the source of such cash.

Thanks & Regards,
Damini

Damini Agarwal
CA, Bengaluru
269 Answers
13 Consultations

5.0 on 5.0

No. Gift to a relative as defined in the Income Tax Act is not taxable. However, it will be good to get the Gift deed registered.
Even cash of 100000 transferred to daughter in law will not be taxable.
There is no limit to the cash balance that you can reflect in your balance sheet.

Hope this clarifies.

Regards,
Nikhil
Nikhil Khanna
CA, Mumbai
1188 Answers
9 Consultations

5.0 on 5.0

Hi

Your mother can transfer it to your wife as gift. There would be no taxes. However, property needs to be registered in your wife's name and shall involve payment of stamp duty.

Lakshita Bhandari
CA, Mumbai
2017 Answers
63 Consultations

5.0 on 5.0

Gift to relatives is exempt. It may be in cash. But, the donor should have property documents so as to prove the genuineness of the sources of such cash income.
Lakshita Bhandari
CA, Mumbai
2017 Answers
63 Consultations

5.0 on 5.0

Dear Sir,

1) Gift of immovable property from your mother to you wife is exempt from income tax provided property is legally in the name of your mother and all the property documents evidencing property in the name of your wife should be kept intact.

2) Cash gift of Rs.1,00,000 is also exempt provided cash is from legal source of income of the donor.

3) Question not clear. In whose books/balance sheet?

Thanks
Vivek Kumar Arora
CA, Delhi
1421 Answers
31 Consultations

5.0 on 5.0

No, transfer of house by your mother to your wife is not taxable. Please ensure that your wife show this as a gift in her return of income.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards,
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
3456 Answers
156 Consultations

5.0 on 5.0

Gift received by daughter-in-law from her parents-in-law are exempt.
Sunny Thakral
CA, Delhi
224 Answers
5 Consultations

5.0 on 5.0

Hi,

Both gift of house by your mother to your wife as well as cash from you to your wife is exempt in the recipient's hands. Cash from your wife to you is also exempt in your hands.

Cash in hand as on the date of balance sheet will be reflected in the balance sheet. There is no limit, provided you have paid tax on the income.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

Gift from Mother to Daughter is exempt in the hands of the Daughter. So, if your wife has received a property from her Mother as a Gift, then it is not taxable in your wife's hands.

Any amount gifted to the Spouse is also exempt. So, any gift from Husband to Wife and also vice versa, is not taxable
Pradeep Bhat
CA, Bengaluru
477 Answers
30 Consultations

5.0 on 5.0

Hello,

No Gift from a relative in not taxable.

Please avoid giving gifts in Cash, it may put you in trouble.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Gift received from mother in law is fully exempted. so not to worry about tax but it is advisable to have proper gift deed duly stamped and registered.
Swati Agrawal
CA, Indore
619 Answers
1 Consultation

5.0 on 5.0

Gift to wife is also non taxable,irrespective of any limits.
Swati Agrawal
CA, Indore
619 Answers
1 Consultation

5.0 on 5.0

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