TAX IMPLICATION ON SELLING PROPERTY RECEIVED BY GIFT FROM FAMILY MEMBER

A mother gifts a residential property to son.

after few years son gifts 90% share of the above residential property to his wife.

now suppose if that property is sold then the capital gain received from the sell would be in whoose hands

Mother - the original gifter

or her Son - as the gift was given to wife

or 90% of Daughter in law and 10% of Son

 

 

Replies (6)
Quick Summary
This discussion clarifies the capital gains tax implications when a property, initially received as a gift from a family member, is later sold. The key question is who is liable for the capital gains tax – the original gifter, the son who received the gift, or his wife who received a share. Experts confirm that while gifts between specified relatives are tax-free, subsequent transfers, like a son gifting a share to his wife, can trigger capital gains tax. The tax liability for the sale of the property will generally fall on the son, even if the legal ownership is shared with his wife, due to specific tax rules regarding spousal transfers.

Third option.
@ iam God

in balance sheet under sundry creditors account there is a two sides debit side and credit side if I made a payment completely to my sundry creditor means it will be shown on which side debit or credit


2. if I wants to payable means it will be shown on which side debit or credit

please I need more clarification,too many people's confusing me
Amit ji

Pls refer section 64(1)(iv)

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants
CA Raj dhosi sir I have doubt

Thanks for reply.

1. since the asset is property , means the receiver of gift has tax liability

2. but the section is for husband and wife. what is the gift is between mother - son 

1. Asset be it money or property, in case of gift between specified relatives, the transfer is taxfree.

2. Husband is gifting 90% to wife in your question sir. so clubbing applicable at the time of sale of property. Capital gains will be taxable in the hands of son even when the legal owners are son and daughter in law.

mother to son transfer - is taxfree

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants
Kandivali West,Mumbai

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
29 September 2026
Work at home

Lottery.sambad.tv

Bhopal

Others

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details