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taxation of gifted property

amit jain (banda) (68 Points)

11 October 2018

Sir if father gifted immovable property to son and son gives property on rent. Then in whose hands rental income will be taxable in father hand or sons hand. please guide me along with relevant section of income tax act.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (169087 Points)
Replied 12 October 2018

If Son be minor, the income will be taxed in the hands of father (sec 64 of IT act)

If Son be major, the income will be taxed in the hands of major son (sec 56(2) of I T act)

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Rohan Bagra (406 Points)
Replied 14 October 2018

if son is minor than the rental income will be clubbed in the income of father as per clubbing of income provisions of income tax act

if son is major than the rental income will be taxable in the hands of the son as per provisions of house property income head provisions.

but as the property transfer is from father to son then this will not be taxable as income (section 56(2)(X) of income tax act, gift from relative is exempt)

for futher query contact me on my email

jkrohan9788 @ gmail.com