27 September 2012
I have come across a situation- One person, say A, is NRI. He paid by cheques from NRI bank account to builder directly ( say cross cheque paid to JKL Constructions ) for buying property for his Indian brother, say B and his mother. Proper Gift deed is signed on plain paper with 2 witnesses-relatives. The registration of property is done on the name of B and mother. Now who is legal owner of this property – A or B? pl reply with justifications/relevant laws..thanks in advance in anticipation..
27 September 2012
Although the legal owner is "B". But for income tax purpose, such gift will be clubbed in the hands of B , under the head other sources. For clubbing , the stamp duty value of such property will be considered u/s 56(2)(VII) .
CAclubindia
