Gift of immovable property to Married Sister.

This query is : Resolved

Mitesh Jain (Querist)
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10 May 2010 I want to gift a flat to my sister.

1.Is it taxable in any case in the hands of my sister?

2.If not then what kind of documentation is to be done by my sister...in order to become the legal owner of the flat, without being liable to any kind of tax under I.T.Act,1961?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 May 2010 1. Gift to sister not taxable.

2. prepare a gift deed on a Rs. 100 stamp paper.

Transfer the flat in her name and also with the registering authorities i. e. stamp duty authorities

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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10 May 2010 The following types of gifts will, however, not be subject to tax, i.e. gifts (a) from a person who is a relative; (b) on the occasion of marriage of the individual; (c) under a will or by way of inheritance; (d) in contemplation of death of the donor; (e) from any local authority as defined in the Explanation to section 10(20) of the Act; (f) from any fund or trust established under section 10(23C) of the Act; (g) from any trust or institution registered under section 12AA of the Act.

Relative is defined in the Act as (i) spouse; (ii) brother or sister; (iii) brother or sister of the spouse; (iv) brother or sister of either of the parents; (v) any lineal ascendant or descendant; (vi) spouse of any of the relative at clauses (ii) to (v); of the individual. Gifts received from these relatives will not be subject to tax.

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