I and my friend are Sunni Muslims; However, we are not related. My friend would like to gift by 'Hiba' my daughter (who is not a minor) a flat in his constructed building as Hiba (Without taking any amount of money). I would like to register this Hiba after paying the due stamp duties and registration charges in my city (Pune). The Muhammadan Law defines the Hiba or gift as a transfer of a determinate (amount of) property without any exchange from one person to another and accepted by or on behalf of. the latter. My question is, Will my friend (donor) or my daughter (donee) have to pay Income tax on this Hiba? The market value of the property is in excess of fifty Lacs. Thanks & Regards,
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Daughter has to declare gift in her income tax returns
2) your query was whether donor or donee has to pay income tax on the gift
3)As per the law as it stands today which was amended in 2017, gift received by any person or persons are taxed in the hands of recipient under the head ‘Income from other sources’ at normal tax rates.
4) exemption is only in respect of close relatives wherein no tax is payable
The Hiba means Gift.
A gift is given without taking anything back by the donor from donee.
Thus the transfer of immovable property by executing a gift or Hiba deed also comes under the same category I.e. without any consideration.
Therefore the donor do not have to pay income tax for this kind of transfer of immovable property.
