Skip to main content

Gifting Immovable Property

Invest Mutual Funds Online

Call 0 94 8300 8300 (India)

   Gift refers to the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person to another. It is very common for people to receive gifts from friends and relatives. However, one needs to realise the ground realities in terms of regulations governing gifts.


   An NRI or PIO may acquire residential or commercial property by way of gift from a person resident in India or an NRI or a PIO except agricultural land/plantation property/farmhouse. Nonresidents are not permitted to acquire immovable property by way of gift from a person resident in India.


   An NRI can transfer agricultural land/farmhouse/plantation property in India as a gift to a person resident in India who is a citizen of India or to another NRI or PIO. A PIO can transfer any immovable property other than agricultural land, plantation property or a farmhouse in India as a gift to a person resident in India or an NRI or a PIO.
   

Tax implications:

It is important to note that gifting is accompanied by several tax implications.


   1. Gifts received in cash: Gifts of money received by an individual of an amount exceeding Rs 50,000 in aggregate (subject to some exceptions) in one financial year would be taxable in the hands of the recipient.
   2. Gift received in kind: Gift received in kind subject to some exceptions are taxable as follows:


Movable property:

Fair market value of movable property including shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures or any work of art received without consideration and where the aggregate fair market value of the gift exceeds Rs 50,000. Difference between the aggregate fair market value and consideration is chargeable to tax if movable property (as described above) is received for a consideration that is less than the fair market value by an amount that exceeds Rs 50,000.

Immovable property:

Any immovable property received without consideration where the stamp duty value of the property exceeds Rs 50,000. The stamp duty value of the property will be chargeable to tax. Difference between stamp duty value and consideration is chargeable to tax if any immovable property received for a consideration less than the stamp duty value.

Certain gifts, however, are not taxable. These include:-

Gifts from relatives: Relatives of the recipient includes spouse, brother, sister, brother or sister of parents, brother or sister of spouse, any lineal ascendant or descendant, any lineal ascendant or descendant of spouse or the spouse of any individual; Gifts received on marriage. However, gifts received on other occasions such as birthdays, anniversaries, festivals and engagements will be chargeable to tax. Gift received under a Will or by way of inheritance, or in contemplation of death of the payer. Gift received on certain other events. Any gift received from any local authority, fund or foundation, university or other educational institution, or hospital or other medical institution or any trust/institution, as specified.

Income from gifts:

There is no capital gain if the property is transferred through gift. However, the income accruing from the gifted property will be taxed in the hands of the donor, in accordance with the Income tax Act. If the donee plans to sell the gifted property, he has to pay capital gains tax. For this, the cost of acquisition will be the cost at which the previous owner acquired the property.

Stamp duty and registration:

Gifts received are fairly prone to litigation. Hence, it is advisable that the gift is made through a registered document signed by the giver of the gift and attested by at least two witnesses. Gifts also attract stamp duty and registration charges as applicable to a sale deed. However, gifts to family members attract a relatively low rate of stamp duty. The stamp duty rates vary in different states.

 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

 

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver Mutual  Funds  Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

Mutual Fund Registrars - CAMS, Karvy MFS, Sundaram, FTAMIL

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Websites of registrar and transfer agents provide a host of services to distributors and their clients at the click of a button. While distributors have been using R&T websites to get mail back and other services your clients perhaps may not be so familiar with the facilities provided on such portals.   In fact, your clients can register on any R & T web site to use a host of services like accessing portfolio,   Consolidated Account Statement (Karvy + CAMS + FTAMIL + SBFS).   In this article we explore the websites of leading R&T agents CAMS, Karvy and Sundaram BNP Paribas Fund Service which service almost the entire industry. Here are some of the useful features which you and your clients can utilize:   CAMS   CAMS services 17

SBI Magnum Taxgain

Grown 37 times in 23 years- SBI Magnum Taxgain Scheme   Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGet Rich on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300  

How Tax Deducted at Source (TDS) works?

    THE tax season is here. And if you are an employee you can't blame your employer for deducting large chunks of money from your salary towards tax deducted at source ( TDS ), which he is legally obliged to do. Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on... What is TDS? TDS reduces your taxable income and could even provide tax relief! The TDS collections account for 40 percent of the total taxes collected in the country. As the name suggests TDS is the amount of tax that is deducted at source in certain types of income . The TDS thus collected is deposited in the Government treasury within a specified time. How is it computed? Some of the types of income where TDS is applicable include salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and UTI/Mutual Funds, commission and brokerage

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now