Gift tax
AKSH
(Querist) 26 November 2013
This query is : Resolved
Suppose if mother wants to gift her house and land to her son how much tax must she pay ? Or is it gifting free of tax ?
( total market price around 50 lakhs.)
ajay sethi
(Expert) 26 November 2013
it should be by gift deed duly stamped and regd . it would attract 2%stamp duty
R.K Nanda
(Expert) 26 November 2013
stamp duty varies in all states.
V R SHROFF
(Expert) 26 November 2013
in mah state 2%
other state, it differ, not free
Rajendra K Goyal
(Expert) 26 November 2013
Agree Stamp duty on gift deed varies from State to State. In Haryana it is 5%. No gift tax to be paid.
Ms.Nirmala P.Rao
(Expert) 27 November 2013
Since the recipient son is a relative within the meaning of chapter 10 of IT Act 1961 it is totally exempt from tax at the hands of donee recipient provided a valid donation/registered gift deed is entered into between th donor mother and the Donee son signed by both of them and attested by at least two witnesses. However, if the mother held the said house to be gifted away for more than 3 years she is totally exempt from Long Term capital Gains Tax including the period during which any previous owner held the said asset/immovable property. If that is not the case since it exceeds net wealth of INR 30 Lac 1% Wealth tax is payable in addition to other wealth or other income. If her over all income exceeds INR 30 lacs she would be liable to pay net wealth tax of 1 % over this and other income/wealth if net wealth exceeds 30 lac INR subject to any allowable deductions and exemptions under IT Act 1961. If you wish to thank me for this reply please click the thank you button on my profile.
C. P. CHUGH
(Expert) 28 November 2013
Gifts received from specified relatives are not liable for any tax, hence a mother can gift to his son the entire property consisting of land and building without attracting any tax liability. Since the gift involves transfer of immovable property, the same is required to registered with the registrar which may require payment of registration charges.
Ms.Nirmala P.Rao
(Expert) 28 November 2013
Yeah! There is absolutely no tax by way of gift tax or income tax both at the hands of the donor and the recipient if both of them are relatives within the meaning of the 'relative' under the Indian Income Tax Act 1961 and such gifts in cash or kind, movable or immovable etc would be clubbed with the income of the donor relative if the donee relative is a minor.
