My client mistakenly transferred land to his daughter via a sale deed instead of a gift deed. Subsequently, he received a notice u/s 148A from the income tax department indicating that he sold the land, for which tax is due. However, this was due to a lack of knowledge about income tax law, which he was unaware of at that time.
In response to the notice, he clarified that the land was transferred to his daughter without any consideration received from her. Despite his response, the income tax department issued an order under section 148A(D). Now, I need to file my income tax return and submit it within 90 days.
What is the solution in this case please suggest?
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Quick Summary
A client mistakenly transferred land to their daughter using a sale deed instead of a gift deed, leading to an income tax notice regarding due tax. The client clarified that no consideration was received, but the tax department issued an order. The primary challenge is that without the registrar agreeing to reclassify the deed as a gift, escaping the tax liability associated with a sale is difficult. The suggested solution involves filing a proper income tax return in response to the notice and potentially seeking cancellation of the sale deed.
See, if it is a sale deed, then there is not much you can do except for filing proper return in response to this notice and pay the due tax. If your contention is that it was a gift deed, then the registrar needs to agree to it. Without registrar saying that it is a gift deed, you cannot escape the taxability here.
Facing the same problem, my father transfered a land to my mother as sale deed in place of gift deed, now income tax is sending notice section under 146,147, 271AAC(1).
Facing the same problem, my father transfered a land to my mother as sale deed in place of gift deed, now income tax is sending notice section under 146,147, 271AAC(1).