Gift
Anil Pal
(Querist) 01 May 2012
This query is : Resolved
My father owned a flat in Mumbai. He passed away 2 years back and the share certificates were transferred in my mother's name.
Now my mother wants to gift the flat to me. I have a younger brother and he has no objection on this transfer.
How can my mother gift the flat to me and will there be any taxes involved ?.
Thanks,
Devajyoti Barman
(Expert) 01 May 2012
Your mother and brother can jointly execute deed of gift in your favour.
Anil Pal
(Querist) 01 May 2012
Thanks Devajyoti for your reply.
Will there be any taxes involved in this ?.
Has the gift deed to be done before selling the apartment ?.
Since, the apartment is currently in my mothers name, can she sell the apartment and the money be gifted to me ?.
Thanks,
A V Vishal
(Expert) 01 May 2012
The choice is yours, you can sell the property and the money can be gifted to you after duly paying any taxes on the gains on sale of the property or the property can be gifted to you and sold. However in the latter case you are bound to incur stamp duty, tranfer & registration charges apart from the capital gains on the subsequent sale.
Anil Pal
(Querist) 01 May 2012
Thanks Vishal for your reply.
In that case, I will opt for the first approach, where-in the property can be sold by my mother and the money can be gifted to me.
The property was purchased by my father in 2001 for 10 Lakh and the current property price is 30 lakh.
The money obtained from selling the property will be used to finance purchasing of new property. Should this not be exempted from the tax then ?.
Does the money obtained from selling the property has to be put in a capital gain account to not attract taxes on the sell.
Or you are saying that irrespective of me using the money to purchase a new property, I will have to pay taxes like capital gain tax - If yes, what would be the amount ?.
Thanks,
Advocate M.Bhadra
(Expert) 01 May 2012
You are all have equal share/right over the property which was left your father died intestate,therefore your mother and brother can relinquish/release their share by a registered Deed of Family Settlement or they can execute a registered Deed of Gift in your favour.
Shonee Kapoor
(Expert) 02 May 2012
Agreed with experts.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
V R SHROFF
(Expert) 03 May 2012
Thru Family Arrangement/Family Settlement Deed./
Anil Pal
(Querist) 14 May 2012
Will the cash received from the Gift deed be taxed in the hands of the recipient.
If yes, this will put me in the 30% tax bracket.
