Gift from sister in law
navpreet bansal
(Querist) 05 February 2012
This query is : Resolved
Dear Sir,
In case of any commercial property. My Father has purchased a property with the name of my Uncle (Fufa Ji) in 1992. Now My Father has sale the property through Uncle. Is there is any provision to get that money from Uncle Ji. He is willing to give. But Tax is matter. Is Uncle can gift the money to my Father or to Me. If there is any Tax Lieblity on this. help required.
Thanks
Navpreet Bansal
+919899738157
ajay sethi
(Expert) 05 February 2012
your uncle can gift the sale proceeds to your father .
for Gift Transactions, we have to proove,
1. Capasity of the donor
2. Genuinness of Transaction
and for prooving genuinness of transaction, evindence of BOOK ENTRY, if regular accounts are being maintained is sufficient.
prabhakar singh
(Expert) 06 February 2012
YOUR FUFA JI IS REQUIRED TO PAY LONG TERM CAPITAL GAIN TAX OVER GAIN IF PROPERTY SOLD BY HIM WAS PURCHASED 03 OR MORE YEARS BEFORE.
AS YOUR FUFA JI IS HUSBAND OF YOUR FATHERS SISTER GIFT FROM HIM TO YOUR FATHER IS NOT TAXABLE IN HANDS OF YOUR FATHER.
Sailesh Kumar Shah
(Expert) 06 February 2012
If Your fufaji made gift money to your father, then he is not required to pay any tax as per provisions of Section 56(2)(vii) of the Income tax act.
However, your fufaji have to pay long term capital gain.
