capital gains tax on sale of gifted property

Sir,

Depending on place where the property is situated you will have to get the Gift deed registered on payment of stamp duty and registration charges. If in the place where the property is situate, Gift deeds are required to be registered then non registration of the same would be fatal to your rights.

   Regarding the capital gains tax, in a case recently decided by the Income Tax Appellate Tribunal at Mumbai it was inter alia held that the date of acquisition of the property in the hands of the Donee will be the date of acquisition by the donor and hence the relevant provisions would apply.

Refer to (2009) 318 ITR ( AT ) ( MUMBAI ) ( SB )

DEPUTY COMMISSIOR OF INCOME TAX V/s MANJULA J SHAH.

Hope you will find this information helpful.

Ravi Gurnani

Dear Mr.Gurnani, Thank you very much for your prompt and professional reply.I read up the IT Vs.Manjula Shah case and it fits the question which I had asked you perfectly.Sir,I am staying in Bangalore City and i don't want to get entangled in courts with an IT Assesing Officer.please advise me.the judgement of the Manjula shah case pertains to Mumbai, will it also apply to Karnataka.

Question 1: If the GIFT DEED is made in June /July 2010 and I sell the villa after 3-6 months, what will be the Capital Gains Tax I will need to pay?the Property is worth Rs.2 crores at present market value>

Question 2., The villa was initially constructed by my mother in 2001, at a cost of Rs.50 lakhs.My mother is willing that the villa may be sold and another flat worth Rs.1.3 Crores be bought in her name.then she will gift the flat to me.The difference will be Rs.70 lakhs on which Capital gains will be paid which I am willing to pay.

Sir which option is better and safer for me, and in which I have to pay mimimum Capital gains?I am really sorry to bother you with the specifics but really appreciate you help.Thank You.

Dr.Badami