My father in law purchased one plot in 2011 in 13 lac what is tax if he gifts me at no or low cost

Forums House Property Taxation My father in law purchased one plot in 2011 in 13 lac what is tax if he gifts me at no or low cost

My father in law purchased one plot in 2011 in 13 lac what is tax if he gifts me at no or low cost

My father in law got transferred one plot from builderin 2011 in RS 13 lac but not registered as possession not offered . His daughter my Wife is only issue to him. Now he wants to gift that plot me at no cost or lower cost what is tax liability to me or my father in law. Rental income on house made by my income on this plot will be clubbed to whom income in future

Profile photo of Akhilesh Asked By: Anonymous 1 replies 0 helpful answers Last Updated: 3 months ago
  • Profile photo of AkhileshAnonymous

    My father in law got transferred one plot from builderin 2011 in RS 13 lac but not registered as possession not offered . His daughter my Wife is only issue to him. Now he wants to gift that plot me at no cost or lower cost what is tax liability to me or my father in law. Rental income on house made by my income on this plot will be clubbed to whom income in future

  • Profile photo of KOMAL MISTRYKOMAL MISTRY
    Moderator

    Immovable property received by an individual from his relative is exemption from tax.

    Following persons would be considered as relative as per Income Tax Act, 1961:

    (a) Spouse of the individual;

    (b) Brother or sister of the individual;

    (c) Brother or sister of the spouse of the individual;

    (d) Brother or sister of either of the parents of the individual;

    (e) Any lineal ascendant or descendant of the individual;

    (f) Any lineal ascendant or descendant of the spouse of the individual;

    (g) Spouse of the persons referred to in (b) to (f).​

    Hence, transfer of property by your father in law to you as gift does not attract any Income tax for the time being. You have to pay Income tax on capital gain on sale of such property only when you are going to sell the property.

    Further, rental income of the property will be considered as taxable income of the owner of the property in future. Hence, if you are the owner of the property by way of gift, then rental income will be clubbed in your taxable income.

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