Tax in case of gift vs. relinquishment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 There are two ways of gifting a property (to a blood relation/spouse):-
1. as gift (deed)
2. via relinquishment deed

As I know, gift deed costs more than relinquishment deed.

Is there any difference in terms of tax liability? I guess there is no tax on gifts from blood relations plus spouse. What about tax in case of relinquishment deed?

Thanks.

Vivek Raju P

Vivek Raju P (Expert)
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12 January 2011 relinquishment of rights or creation of rights in favour of another person will be an event that will give rise to capital gains,

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 Could you please explain a bit more?

* Capital gains will be for the giver (who is relinquishing the rights) or taker (new person who gets the property rights)?

* How can there be capital gain because there is no money given or received?

* What if the relinquishment is done after 3 years period (capital gains rules are different in the new tax rule)?

* How much does gift deed costs (variable with the price of property or fixed amount?)?

* Which way to transfer (gift or relinquishment) would you suggest? Is this also the most common method used by people? As far as I know, gift deed is the most common among the two.

Thanks in advance.

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Guest

Guest (Expert)

15 January 2011 gift deed and relinquishment deed in blood relation, are equal so far provisions of I.T.Act are concerned

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2011 Thanks Mr. Vivek and Mr. MOONDRA.
But the confusion is that the replies are contradictory.

More clarification would be helpful.

Guest

Guest (Expert)

16 January 2011 Now, what is your specific confusion

Guest

Guest (Expert)