Tax on immovable property as gift

Prem Dhawan (Querist) 18 July 2020 This query is : Resolved
Hi,
immovable property as gift from certain family members is exempted from tax.

Will I (an adult man) have to pay tax if I receive a residential plot as gift from my mother's sister who is 65 years old and a widow with no children/heir?

Will my mother (70 years old and widow with children/heirs) have to pay tax if she receives above plot as gift from her sister (who is 65 years old, a widow with no children/heir)? Later, can my mother gift this plot to me (other legal heirs will sign relinquishment deeds) or to all her legal heirs without any tax on any donee?

Thanks in advance.

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Dr J C Vashista (Expert) 19 July 2020
Post your query in chartered accounts club.

Prem Dhawan (Querist) 19 July 2020
Posted in this forum. Is this what you meant?
Waiting for responses.

https://www.caclubindia.com/experts/details.asp?mod_id=2799464

Rajendra K Goyal (Expert) 19 July 2020
Gift to your mother from her sister would be tax free (b).

Gift received from relatives are exempt from tax. by virtue of Section 56. Following persons would be considered as relative
(a) Spouse of the individual;

(b) Brother or sister of the individual;

(c) Brother or sister of the spouse of the individual;

(d) Brother or sister of either of the parents of the individual;

(e) Any lineal ascendant or descendent of the individual;

(f) Any lineal ascendant or descendent of the spouse of the individual;

(g) Spouse of the persons referred to in (b) to (f).

Prem Dhawan (Querist) 19 July 2020
According to (d), Brother or sister of either of the parents of the individual, the gift to me should also be tax exempt.

Isn't it?

Prem Dhawan (Querist) 19 July 2020
However gift to my wife may not be tax exempt. Please confirm.

Basically, if this plot is gifted by my mother's sister, who is 65 years old and a widow with no children/heir, to my wife, will she (an adult woman with children/heir) have to pay tax? Basically she will receive from the sister of her mother-in-law. Is this gift in this relation also tax exempted?

Guest (Expert) 19 July 2020
Better Post it in the CA Club of our Forum for an Professional guidance.

Rajendra K Goyal (Expert) 19 July 2020
Yes as per d gift from sister of your mother is also exempted.

Go through the FAQ of IT department available online.

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