CA Ashwani Agarwal (Practice) (3049 Points)
01 June 2011A person is intending to gift his prpoerty to the Son of his brother. As we know that section 47(iii) doesn't regard gift as transfer. I wanted to know the CONDITIONS TO BR FULFILLED to fulfill the requirements of this section.
The implications of Section 56(2)(vii) is already known.
Regards.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 01 June 2011
If d property is immovable requires a valid gift deed & such deed needs to be registered.
CA Ashwani Agarwal
(Practice)
(3049 Points)
Replied 01 June 2011
Thanks a lot sir.... but i wanted to know if there is any clause regarding specific persons only to whom the gift is exempt or it can be to anyone...
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 01 June 2011
gift is taxable in the hands of recipant.if received from relative than it is exempted
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 01 June 2011
| Originally posted by : ashwani agarwal | ||
 |
Thanks a lot sir.... but i wanted to know if there is any clause regarding specific persons only to whom the gift is exempt or it can be to anyone... |
 |
Pls refer to d defintion of relative which mentioned under
EXPLAINATION TO PROVISO u/s 56(vi)
to such persons if gifted then its exempted.
CA Ashwani Agarwal
(Practice)
(3049 Points)
Replied 01 June 2011
| Originally posted by : TusharSSampatM.Com CA,CS-FINAL | ||
|
|
Originally posted by : ashwani agarwal Thanks a lot sir.... but i wanted to know if there is any clause regarding specific persons only to whom the gift is exempt or it can be to anyone... Pls refer to d defintion of relative which mentioned under EXPLAINATION TO PROVISO u/s 56(vi) to such persons if gifted then its exempted. |
|
So if a person has gifted a property to a non relative then it will be taxable in the hands of transferor as capital gains( BECAUSE IT IS NOT EXEMPT U/s 47(iii) ACCORDING TO YOU) and taxable in the hands of the receiver u/s 56(2)(vii). Same prpoerty will be taxed two times?
Please Clarify.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 02 June 2011
See u are actually mixing two sectons which are actually differnt in operation
Sec47 (iii) deals wit tranaction wher its not a tranfer whn actaully ther is a trf bt not as per IT-ACT so it will not be chargeable to tax under d had capital gains.
Sec 56(2) basically deals wher any property is gifted without adequate consideration .
How its two time taxed if u selling it thn ull chargeable under head capital gain
bt if u giving it as a gift thn its taxable under d head income from other source to the reciever ant not transferor???????
CA Ashwani Agarwal
(Practice)
(3049 Points)
Replied 02 June 2011
Thats what i want to know that if i am gifting it to a non relative then will it be exempt under 47(iii) or not.....
If not, then what are the conditions u/s 47(iii) to make transfer as a gift exempt???
CA NITUL MEHTA
(KPMG-Senior Consultant-International Tax )
(236 Points)
Replied 03 June 2011
under section 49(i) cost of previous owner is taken when a property is reccived in gift inheritance etc so when you git it to the brothers son you wont be taxed any thing but the cost of aquisition to you will become cost to borthers son, but as brothers son is not a relative for IT act he will be taxed for recciving that gift, there is nowhere written directly that gift wont be treated as transfer but as your cost becomes cost to subsequent owner due to gift given by you you wont be taxed at all and dont go near section 47 to not to treat it as a transfer it is definalty a transfer but as tushar said as it is taxed as gift to some one else it is exempt to you
Abhinav Jhunjhunwala
(Proprietor)
(31 Points)
Replied 06 November 2012
A slight deviation to the above question, under section 56(2), is gifting of immovable property to brother's son taxable (i presume it would be gift tax)?
If yes, what is the rate of tax?
Is it borne by the donor or donee?
A humble request for a quick response.
CAclubindia
