• Income tax

Dear Sir

I have question related to income tax filing.Can you please clarify.
My father sold a old house in may 2017 and gifted that amount to me which I have used to purchase house in Feb 2018. 
 1.Do I have to show this in income tax filing, if so how to show under what category.
2. Do I/father has to pay captail gain tax.

Asked 6 years ago in Taxation

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13 Answers

Answer 1.

Son have to show the amount of gift in ITR as an exempted income because the gift is transferred from father to son and this relation falls under the definition of “relative” as per income tax act which is exempt from tax.

Answer 2.

Father have to pay a capital gain.(whether its long term capital gain or short term capital gain depends upon the holding period of the property)

Anshul Mittal
Advocate, Gurgaon
6 Answers

Not rated

You must show receipt of gift received by you from your father in your income tax returns

2) your father has to pay capital gain s tax as money has not been invested by him in purchase of another house

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1. Yes, gifts received from relatives is required to be disclosed in the Income tax return. Gifts received are treated as exempt income and are required to be disclosed in the income tax return. You CA shall disclose same in the schedule of ITR while filing returns.

2. Yes your father has to pay capital gain tax but he can seek exemption under 54F for the house you purchased as In a recent case of Commissioner of Income Tax Vs Kamal Wahal the honorable Delhi High Court ruled in assessee’s favor. The honorable Court relied upon its own judgment in the case of CIT v. Ravinder Kumar Arora in which it was laid down that where the entire purchase consideration was paid only by the assessee and not a single penny was contributed by any other person, preferring a purposive construction against a literal construction, more so when even applying the literal construction, there is nothing in section 54F to show that the house should be purchased in the name of the assessee only. Section 54F in terms does not require that the new residential property shall be purchased in the name of the assessee; it merely says that the assessee should have purchased/constructed 'a residential house'

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0


your father gifted you an amount which you used to purchase a property. it will not come under the tax net, however, if you give the house on rent, you have to pay tax as you have profited from the money gifted to you.

you have to mention your assets in your returns in the gift. no tax has to be paid by you /father.


Rahul Mishra
Advocate, Lucknow
14091 Answers
65 Consultations

5.0 on 5.0

1. Yes you have to show the amount in your tax return, but you don’t need to pay tax on the same as it’s a gift from your father which is tax- free as your relationship comes under the category of full blood according to Income Tax act.

2. Your father has to pay tax on capital gain as the same has to be invested by your father in his own capacity.

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

As an additional advice, buy the property in your fathers name and ask him to gift the same property through a gift deed in your favour. This process would be more cheaper as the stamp duty for gift deed is more cheaper( check as per your state)

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

1. You would have to disclose the amount received by your father in your IT returns as gift and since gift was made from a father to a daughter you would not have to pay any taxes for the same.

2. Your father would have to pay capital gain has the money had to be invested by him and gifting entire sale proceeds to you does not free him from tax implications.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

Dear Client,

Amount will be taxed at the hand of receiver. Your father is liable to CGT, But it could have saved if in sale deed, it shall me mention that consideration money is invested in new property brought in daughters name.

Yogendra Singh Rajawat
Advocate, Jaipur
22714 Answers
31 Consultations

4.4 on 5.0

1. If the money was not gifted to you and the flat was bought in your name by your father, then he would not be required to pay capital gains tax

2. In your case since your father gifted you sale proceeds of his house, that becomes your income. However since its received from a relative, it is not taxable in your hands

3. However your father will now be required to pay capital gains tax

4. You can show that money as gift from father in your income tax return

Yusuf Rampurawala
Advocate, Mumbai
7559 Answers
79 Consultations

5.0 on 5.0

This is my response to you:

1.Do I have to show this in income tax filing, if so how to show under what category

Answer: Yes you will have to show this in IT returns. This would come under the category of assets increased;

2. Do I/father has to pay captail gain tax?

Answer: Yes your father will have to file a capital gain tax if property was sold after 3 years of purchase;

This is my response to you:

1. Engage services of a CA who will do your IT filing properly;

2. Your CA will also prepare capital gain tax statement;

3. There seems to be no legal problem with the information supplied by you.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Father have to show the amount in his return and pay LTCG as per the rate and you may take that amount as loan from him instead and need not to show in ITR.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

1. This is not an income hence it will not attract income tax.

2. As your father has not sold the property, it will not attract the capital gains tax also.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

You donot need not make any capital gain show that sale and purchase in your tax Return. As it is gifted by your father so that you can taken sale consideration as a ansictral property

Hemadri Chandrakanth
Advocate, Vijayawada
98 Answers
10 Consultations

4.0 on 5.0

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