Tax Liability on Share after Relinquishment

I presume that your Uncle is real brother of your father.

Any gift of property or part in property from your uncle to you does not attract any tax liability in the hands of both of you.

 There is no gift tax in the hands of donor and in the hands of recipient, since the gift is coming from one of the specified relatives, it will not be included in his taxable income.

National Highways Authority of India & Rural Electrification Corporation Limited. 

Thanks for your reply. Just wanted to clarify, in case that lets you give me a more pointed answer:

The donor is my own maternal uncle. Property was bought by my maternal grandfather, which was gifted to his wife (grandmother). Later inherited by 5 children. Since I inherited a slice (coz my mother died), I had given him relinquishment 20 years back. Now he is selling the property and wants to give me my complete share. The plot is almost 35 years old. House on the land is also 32 years old.

But Mr Vineet, what about Capital Gains or Weath Tax?

Mr Sunil,

Your relinquishment of right in past is immaterial, as any gift from siblings of your parents is tax free in your hand.

Coming to pointed reply, it appears that your uncle is gifting you your share in the sale proceeds and not the actual property (As he is selling the property). Hence it is a simple case of gift of money.

No capital gains are leviable in the transfers in the nature of gift. In your case as the gift itself is in form of money, the same does not fall under the ambit of capital gains at all.

Lastly, about wealth tax, if you do not keep the gift received in form of cash, jewellery, car, urban plot or other specified items includible in wealth, atleast this amount will not be included in taxable wealth.

Hope it resolves your query. So enjoy the gift without any worries.