Chembur flat gift by sister in law
One flat is in name of my sister in law (Bhabhi, my elder brother's wife), this comes for me after distribution of all assets among brothers. Can my bhabhi gift me this flat and can I save myself from Income tax? is any Income tax applicable on this except property tax and stamp duty?
Thanks n Regards
Asked 2 years ago in Property Law from Mumbai, Maharashtra
for income tax issues consult your CA . your sister in law can execute gift deed in your favour have it duly stamped and registered . once possession has been handed over gift is complete
Income tax is applicable for the transaction relating to property exceeding 5 lakhs. since your sister in law wants to execute a gift deed, income tax is not applicable for your transaction
stamp duty paid on gift is similar to that of buying the property,inother word it is like a gift in which you will have to 7-8% stamp duty on the value of property
Advocate, New Delhi
Your sister-in-law can gift you this flat by making a gift deed in your favour. Once the gift deed is made and stamped the ownership of this flat will pass from her to you.
Gifts received from relatives are not liable for any tax, hence your sister-in-law can safely gift to you the entire flat without attracting any taxation liability. Since the recipient (you) and donor (your sister-in-law) are related to each other the gift is totally exempt from tax at the hands of recipient provided a valid gift deed is entered into between the donor (your sister-in-law) and the donee (you) and signed by both of them.