Tax on property that is to be gifted

In your case we shall know the relation of your Aunt to your father.

In following cases, gift of immovable property will not be charged to tax.

1) Property received from relatives.

Relative for this purpose means:

i. In case of an Individual

a. Spouse of the individual;

b. Brother or sister of the individual;

c. Brother or sister of the spouse of the individual;

d. Brother or sister of either of the parents of the individual;

e. Any lineal ascendant or descendent of the individual;

f. Any lineal ascendant or descendent of the spouse of the individual;

g. Spouse of the persons referred to in (b) to (f).

Gifts (i.e. immovable property received without consideration) received from relatives

are not charged to tax(meaning of relative has been discussed earlier). Friend is not a

relative as defined in the above list and hence, gift received from friends will be charged

to tax (if other criteria of taxing gift are satisfied).

If the above conditions of gift are satisfied your father need not pay tax. The tax will not pass on to you if the above conditions are satisfied.

Dear Sir,

Neither your father nor you is liable for any taxes to be paid on that property. Your aunt who is the beneficiary in this case will have to bear the registration charges now and also the Capital Gain Tax whenever she sells the property.

Trust this clarifies your query.

Feel free to get back/ call back for any further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB - GEN, CERT. FAFP

Dear Sir,

Neither you nor your father need to pay any taxes on gifting this property to your aunt. Your aunt will pay the taxes on income received from this property.

Please let me know if you need any further assistance on the above.

Thanks and Regards

CA Abhishek Dugar