Dear Sir,
Yes, This can be done. However, why do you want to structure the transaction in this way. Any particular reason?
Capital gains / gift
Myself and my 3 sisters have become owners of our fathers ownership property by way of nomination,the society has transferred the share certificate in all 4 names, now amicably my sisters are releasing their right over the property for a consideration, im availing a loan from the bank to pay them the amount ,my question is that can we execute a released deed without consideration ( ie out of love & affection they are releasing their rights) and i can separately gift them the consideration also by doing this will there be a issue in income tax ( amount would be around 10 to 12 lakhs paid to each ) Also pls advice the simple & best way to get this transaction sorted
Asked 8 years ago in Capital Gains Tax
No, there will not be any income tax. As gifts are exempt from tax.
Hi.
Gifts between siblings will be exempt from tax. The gift of share of immovable property from your sisters to you will be exempt, while the money gifted by you to them will also be exempt. However, the transfer of your sisters' share of immovable property to you may attract stamp duty and registration charges will be depend upon the city, area and the state in which the property is situated.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
Hello,
Yes you can do make a release deed and the amount paid to them can be shown as a gift on which no tax is payable by them. But on a downside you will not be elligible to claim any benefit on the interest amount paid to them.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
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