Gift Tax

Querist : Anonymous (Querist) 05 June 2010 This query is : Resolved
Sir,
There has been conflicting answers received for my query. I shall be thankful if you kind enough to clarify the following on the GIFT TAX

1. the original value of the shop purchased 5 yers ago is say 30 Lakhs
2. Present market value as per Circle rate is say 35 Lakhs
3 Now a sale deed was prepared at discounted price of Rs 5 Lakhs as it was sold at Rs 5 lakhs to "relative" (son of elder Brother) out of love and affection .

Kindly let me know whether the Income Tax is Payable at Rs 35 Lakhs by the Donee (Real nephew) OR
An amount of 5 Lakhs is Taxable OR
It is total tex free as it falls in the Gift Categories
I shall be thankful if u kindly let me know the details and other precaution to be taken while preparaing the sale deed and gift deed

Regards
Riya

Follow Query

Report Abuse

A V Vishal (Expert) 05 June 2010
This is a clear transaction of sale, where did the element of gift crop up. Your query says "Now a sale deed was prepared at discounted price of Rs 5 Lakhs as it was sold at Rs 5 lakhs to "relative" ", where there is a sale deed then question of gifting does not arise.

Vineet (Expert) 05 June 2010
Query replied in detail in seperate thread. Yes there is a gift element in the hands of Nephew but the same is exempt.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries