Capital gains

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shashi gopalkrishna (Querist)
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06 March 2016 Dear Sir/Madam My parents bought a house cum shop in 1980 and now my mother want to gift it to her three children, including me. I agreed to buy the share of my two siblings and agreed to pay cash for their share to both of them. I will have to sell a land in my name to buy the above property from my siblings. My question is: 1. How will my Mother be effected in taxation? 2. How will I be effected? 3. How will my siblings be effected? Regards

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CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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07 March 2016 1. Gift from your mother is not regarded transfer u/s 47;
2. Sale of land by you for payment to your siblings attract capital gains.
3. There is no income tax liability on receipt of gift from your mother (as the transaction of gift is between relatives)

You written that your parents has bought the house, how your mother alone can gift it?
Important piece of advice:
Check the provisions of section 6 of the Hindu Succession Act, 1956 to ensure your mother has full rights to gift you alone by excluding other two siblings. In case other two siblings are sharers / coparcenars, they may claim partition in future and the gifted property from your mother gets into litigation.

shashi gopalkrishna

shashi gopalkrishna (Querist)
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13 March 2016 Thanks for the reply

Thanks for the reply sir,
In 1980, my daddy bought the property, who is no more now. Now the property is in my Mom's name. My Mom told that she want to gift the property as partition or gift by whatever name called to all the three of us. My other two siblings don't want to keep that property for so I decided to take that but will have to give their share in money. Plz. highlight
Regards sir

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