Gift of property to daughters by widow mother with no son.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2013 Sir,

My old mother 71, is widow. She has two daughters and no son.My father has left one house in urban area. My mother wants to gift this house to her two daughters in two equal portions, in her life time. We both sisters are married and filing our tax returns. What will be the tax liability to us; or will it be tax free in our hands? What we will have to do for this, so that it may become tax free?

Mother has also made a will in name of we two sisters, which will be applicable after her death only.

UDB

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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19 July 2013 gift from mother(relative ) is exempted from tax

Rupesh Jain

Rupesh Jain (Expert)
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19 July 2013 AS YOU MENTION YOU MOTHER HAVE ALREADY WILL MADE .

THEN IF YOU MADE TO SELL THE HOUSE AT PRESENT THEN YOUR MOTHER HAVE TO MAKE GIFT DEED.

OTHER WISE AFTER MOTHER DEATH IT AUTOMATICALLY, YOU BOTH SISTERS ARE OWNER OF 50%-50% PROPERTY IF YOUR MOTHER NOT MAKE THE WILL.

UNDER INCOME TAX ACT YOU BOTH ARE EXEMPT FROM INCOME TAX GOR GIFT RECEIVED FROM YOUR RELATIVE.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 July 2013 stamp duty will also needs to pay in case a gift deed is made and reg.

As per explanation to sec 56(2)gifts to relative is exempted from tax.
Your mom gifting to you and your sister is covered by this and hence exempted.