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.