Urgent please help
C.A Alok Mukherjee
(Querist) 23 July 2012
This query is : Resolved
We are three brothers. After my father's demise the ancestral property (an old house originally belonged to my father) we three brothers are the co-owners now. My elder brothers want to transfer there share to me as gift. For this a stamp duty around Rs 13500/- is payable.
In turn, i also want to gift some money to them from my love affection. (So far as my understanding is) i can gift money to them and that will not be taxable AS INCOME because it is gift within the same blood relationship and that is exempted under section 56(2) of the Income Tax Act.
I will execute gift of money by way of an affidavit duly notarized or if require a deed is also to be made.
My worry is whether above transfer of immovable property and money in form of gift, and not in form of "sale",Is it legally correct in all respect?
It will be a great help if i get some valued advice from you.
ajay sethi
(Expert) 23 July 2012
if old house belonged to your father it does not become ancestral property . was it the self acquired property of father . ?
instead of gift deed your brother can execute deed of relinquishment in your favour . it attracts nominal stamp duty .
for gift of cash to your brother not necessary to have gift deed executed . an affidavit would suffice
C.A Alok Mukherjee
(Querist) 24 July 2012
Dear Mr.Sethi,
thanks a lot for your help. In fact this house originally purchased by my grandmother and thereafter by my father from his two brothers (my uncle)at a consideration of Rs 20000 in 1980.
What is the difference between gift deed and deed of relinquishment?
In West Bengal, the registration lawyer is telling that there is no such deed, here i am bit confused, had it been a nominal stamp duty, i won't mind but in that case what would be the value if the fare market value / consideration is 27 lakh.
Another question Sir, would the gift of money be anyway taxed to my brother?
