To enquire about tds on gift of property to someone

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2017 I wish to GIFT my flat to my deemed daughter without any consideration. The valuation for the purpose of Stamp Duty may be more than fifty Lakh. I want to know that TDS on Property will be attracted on this deal. My deemed daughter is neither my legally adopted nor my real daughter. I can not adopt her due to some legal restrictions. She grew up since childhood and is married, aged about 26 years now. I know that WILL is one way to gift her the property, but I do not want that my will may be challenged in court of law after my death by my greedy relatives and she may have to face many troubles. What other Income tax rules shall be there for this deal. Please oblige me by making me aware of the same. You may reply me at my mail ID

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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06 June 2017 In your case in my opinion gift is not that easy as the reciepient is neither your adopted nor real daughter and in such circumstances how she will come under relative to satisfy the income tax officer. As gift to relatives only is exempt in income tax otherwise for non relatives exempt value of gift is Rs 50000/- only. You can show the gift on the occassion of her marriage as gift received by an individual on the occassion of marriage is exempt. TDS will not be attracted on this deal since there is no consideration paid by her to you.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2017 Thank you Mr.Goyal for looking into my query and advising. I know that in such a case will attract Gift Tax on the receiver. Please let me know what is the rate of Gift tax. My deemed daughter paid small tax in the 10% category 1540.00 only, last year. She is having income from interest from Banks on FDs.

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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07 June 2017 There is no gift tax in strict sense of the term it is in the form of income tax. Stamp duty vale of the property gifted will be taxable in the hands of recipient i.e . included in her computation of income.

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2017 Thank you Sir. It will help me a lot. I respect your cooperation.