Gift

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swasti (Querist)
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16 June 2017 If an individual gifts land to a company, then as per provisions of Sec 56 of the I.T.Act, it would be taxable in the hands of recepient under Income from Other Sources. The stamp duty is being paid on the guideline value.

Please tell that by virtue of Sec 50C of the I.T.Act, would the guideline value be considered the total sale value for the individual and he be liable to pay Capital Gains Tax on the same transaction?

Amol S Joglekar

Amol S Joglekar (Expert)
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16 June 2017 50C is applicable if the consideration is RECEIVED by the assessee....... in your case the assessee has not received any consideration by GIFTING land to Company. So? No question of taxing it as capital gain.
Your case falls under 56(2)(x)(b)(A)wef 1/4/2017.
Your views please.