Amount received under Gift Deed
This query is : Resolved
15 March 2022
After the demise of my both parents, in terms of a Will executed by my father, myself alongwith my 3 younger sisters and wife of my pre-deceased younger brother are co-owners of my father's self-aquired flat, having equal ownership rights of 20% each.
My sister-in-law (deceased younger brother's wife) wants to take my share. Consideration agreed is 20% of the value for stamp duty. I am being requested to execute a Relinquishment Deed, with 'no consideration' whereby the same can be registered without payment of any stamp duty. And it is proposed that the amount would be paid to me under a Gift Deed.
My queries:
1. What is my liability if the authorities question non-payment of stamp duty?
2. What is my liability to income tax in respect of the amount received under a Gift Deed?
3. Is amount received from deceased younger brother's wife under a Gift Deed exempt from Income Tax?
3. Can I claim non-applicability of income tax on the grounds that it is received in terms of inheritance?
My sister-in-law (deceased younger brother's wife) wants to take my share. Consideration agreed is 20% of the value for stamp duty. I am being requested to execute a Relinquishment Deed, with 'no consideration' whereby the same can be registered without payment of any stamp duty. And it is proposed that the amount would be paid to me under a Gift Deed.
My queries:
1. What is my liability if the authorities question non-payment of stamp duty?
2. What is my liability to income tax in respect of the amount received under a Gift Deed?
3. Is amount received from deceased younger brother's wife under a Gift Deed exempt from Income Tax?
3. Can I claim non-applicability of income tax on the grounds that it is received in terms of inheritance?
16 March 2022
1 Stamp duty not applicable in case of gift.
2 and 3 gift from relative exempt from tax.
2 and 3 gift from relative exempt from tax.
18 March 2022
Thank you, Seetharaman sir. As regards Income Tax on the amount to be received by me towards relinquishment / transfer of my share of ownership rights, I believe I can claim non-applicability / exemption on grounds of income by way of inheritance; or as gift received from a relative defined under the Income Tax Act; or as amount being equivalent to stamp duty value.
As regards Stamp Duty, I request a few more inputs from you. Who is the person liable to pay - buyer or seller? In case at a later date the authorities take a view that it is a coloured transaction, on whom will they raise the demand - buyer or seller?
As regards Stamp Duty, I request a few more inputs from you. Who is the person liable to pay - buyer or seller? In case at a later date the authorities take a view that it is a coloured transaction, on whom will they raise the demand - buyer or seller?
18 March 2022
No stamp duty payable on inheritance and gift. Only buyer has to pay stamp duty.
20 March 2022
Thank you, once again sir!
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