House property

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2017 Hi Expert,
1) A person had no residential house in his name.
His daughter gave him money & he purchased an apartment in his name in year 2011.
IT return was filed by the person in 2011.
Any need to mention about the purchase of apartment in the IT return for AY 2011-12?

2) Would the amount given by daughter to buy house treated as the father's
income in FY 2010-11 or just a transfer of money?

Thanks!

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 November 2017 read section 56 of the Income-tax act.

there is no provision on the tax return for showing purchase of house property.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 November 2017 If called upon to prove source of the investment, and the source of money to
purchase the flat is not proved with documentary evidence or up to the satisfaction
of the assessing officer that it is received from daughter, then amount will be
assessed in the hands of father as unexplained investment.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2017 Many thanks Mr. Chackrapani.
Where the daughter works abroad & files return in her resident country, can the Income Tax officer ask the father to submit
a copy of the ITR filed abroad. (Evidence w.r.t. source of funds have been submitted)

Is the foreign currency given as gift to father (& held by him in fixed deposit in Indian rupees as on today) be taxable as income in the FY
it was received.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 November 2017 ITO can call for the copy of tax return filed abroad in view of the 'satisfaction of ITO' used in law for not invoking assessment as unexplained investment.

Principal portion of the FD is tax free, but the interest earned thereon is taxable in
the hands of father.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2017 I greatly appreciate your reply.
Tried to send a PM.
Like to know if your provide consultancy over phone on a
professional basis.