Gift Tax v/s Sec 56 of IT Act

Originally posted by : asuterwala
	Fact : An immovable property is acquired in the year 2003 without any consideration (the only consideration being in kind offered by the acquiror for rendering his services for clerance of the project where this immovable property exists) Question1 : What shall be the implications as far as Gift tax Act is concerned? (Sec 56 was not applicable then) Question2: What shall be the implications as far as Income Tax Act is concerned, if the above property was acquired in the year 2005? (Sec 56 was applicable then but not to immovable property) Kindly clarify. Regards, Aziz Suterwala

share the registration status of property, 

The property is yet to be registered

without registration no transaction is legally valid, 

on the date of registration the assessee would get position of property and the applicable rules would apply

There are 2 stamp papers available with the assessee, one for the year 2003 and another for 2005. There is an internal arrangement with the builder wherein he is ready to execute the transaction on any of the dates. The assessee is ready to pay the penalty, etc. till date levied by the stamp authorities for delayed registration. My query is whether he should execute the transaction in 2003 or 2005?

how the assesee can register the property in back  year? 

for registration the vendor has to take NOC from ITO if the market value of property is above specified limit.

immovable property has to get transfered by instrument of registration ( even by way of gift) and by way of will ( for family members ) or by way of succession/ legal inheritence.

there is no other way to get the immovable property from other than family members unless the stamp duty is paid on registration and the registration date is valid. 

having blank stamp papers means nothing in case of prpperty transfer.