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taxability of other sources

CA SALONI (CHARTERED ACCOUNTANT) (391 Points)

11 February 2011

Please help me!

Question: If A transfers to B, an immovable property at a consideration less than than the stamp duty value,, after 01/10/2009

WHAT WILL BE THE TAXABILITY IN THE HANDS OF RECEPIENT U/H OTHER SOURCES?

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5 Replies

rachit jain (chartered accountant ) (635 Points)
Replied 11 February 2011

difference between actual consideration and stamp duty value will be treated as gift(other sources) and if it exceed 50000 then the whole amount of gift will be chargeble to tax.

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CA SALONI (CHARTERED ACCOUNTANT) (391 Points)
Replied 11 February 2011

but have you gone thru finance act 2010, i guess its not taxable!

please confirm! if I am wrong

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 11 February 2011

Dear saloni,

Prior to Finance act 2010, immovable property received without any consideration or without adequete consideration is taxable under the head income from other sources and the difference between actual consideration and stamp value if the same exceeds INR 50000 would be taxed as Income from other sources.

FInance Act 2010 amended this provision and it provides as follows : any immovable property received without consideration is taxable under the head income from other sources if the stamp value of such property exceeds INR 50,000.

Thus, only if immovable property received free of cost as a total gift without paying anything, it would be taxable under the head income from other sources. Otherwise no.

U may also refer finance act 2010 for ur reference. Hope this solves ur query.

Thanks and Regards,

manoj B Gavali