• Property purchase funded by father

I have received tax free amount of 30 lakhs from my father which he has withdrawn from his GPF account.This amount is used to purchase a flat costing 58 lakhs + registry charges .What are the tax implications and necessary documentation needs to be done to save from Income Tax notices and problems in future?
Asked 4 years ago in Property Law
Religion: Hindu

8 answers received in 1 day.

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9 Answers

Since it’s a tax fees amount and your father has gifted the same in your favour for helping you buy a flat. Any transfer in real blood isn’t a problem as it is valid according to the law. It doesn’t reflect in your gains and you don’t need to pay tax for the same as it was tax free amount of your father.

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

hello,

an amount has been given to you by way of a gift. therefore, the amount is not taxable. the amount should be specified by your father as a gift in his IT return which would exempt you and him.

regards

Rahul Mishra
Advocate, Lucknow
13757 Answers
65 Consultations

5.0 on 5.0

1)your father can declare in his income tax returns regarding gift given to you of Rs 30 lakhs

2) you should also in your income tax returns declare the receipt of Rs 30 lakhs from father

3)there is no gift tax payable as git was given by father to his son

4) gift deed is not necessary

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

This can be declared as gift from parents and under section 56 income tax act the gift from parents in any form is exempt from tax liability.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. Since the gift was from one blood relative to another it is not taxable. However, both you and your father should make a declaration of this gift and seek exemption u/s 56 of IT Act in your respective IT returns.

2. Gift tax is not attracted. No further documentation is required either.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

There is no tax on a gift if it is received from certain specified relatives, irrespective of the value of those gifts. As per the income tax rules, such relatives include: spouse, brother or sister, spouse's brother or sister, parents, spouse's parents, brothers and sisters of parents and spouse's parents; and legal heirs if any.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

This is my response to you:

1. Since you converted the GPF amount into purchase price of property then nobody can question you;

2. Neither the government nor the IT department can question how your father uses his GPF amount;

3. The necessary documentations will be assessed after knowing whether you are purchasing a resale flat or a from a new project;

4. Therefore, you will not face tax implications as such, if you have more doubts then approach a CA.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Firstly, the amount which you have received as of GPF nature that means it is already taxed.

Secondly, now you don’t have to pay any tax on the same as you are using it to buy the flat.

Thirdly, if you would have invested somewhere and having some income out of it then you may have charged taxes in that amount only.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

The gift received from father or close relative is not taxable.

However any revenue derived out of the said gift shall be taxable.

Since you have invested in the purchase of a house property, it may not be taxable.

The property, when sold, may attract capital gains accordingly.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

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