enjoy the pleasure of gifting without any tax phobia



My dad a retired person is having a land at Bhilai which is registered in his name which he purchased in 1985. I am the only daughter. My dad wish to gift the same to me. I would like to know how the land can be gifted. Whether such gift is to be registered and what shall be stamp duty payable, if any? Further, upon sale of the same, what shall be the cost of purchase that will be taken in my hand and what shall be the provision of taxation in my hand? If I constructs a house in the land after the gift the income, if any generated from the house will be taxable in whose hand. Sir, please give point wise reply. [Maumita Bhattacharjee- mau040974@gmail.com]


Gift received is liked by one and all as it brings a smile on the face. The charm of the gift gets enhanced when one gets to know that the gift received from relatives is totally tax free. Giving gifts is considered as a generous gesture & income tax law in India too is very generous on the gifting provision if it is in between the relatives. Gift received by an Individual from any of the following person is totally tax free:
(i)        spouse of the individual;
(ii)       brother or sister of the individual;
(iii)     brother or sister of the spouse of the individual;
(iv)     brother or sister of either of the parents of the individual;
(v)       any lineal ascendant or descendant of the individual;
(vi)     any lineal ascendant or descendant of the spouse of the individual;
(vii)    spouse of the person referred to in clauses (ii) to (vi).

In your specific case,

  1. The land can be gifted by father to a daughter without any tax implication thereon. There would not be any income tax implication, neither in the hands of the father nor in the hands of Daughter.
  2. Registration is mandatory as per the Registration Act in respect of gift of an immoveable property.
  3. In respect of the gifted property, the cost of acquisition of donor (i.e., your father in the present case) would be treated as cost in the hands of donee (i.e., your hands in the present case).
  4. The income generated to the major daughter from the gifted property would not be clubbed with the income of the donor. The income generated would be taxable as your income only.

Query 2]

In previous years, only I took advantage of son’s tuition fee u/s 80C in my return. Please let me know if my wife can also take partial advantage of this in her next return simultaneously? [Shankarlal Fatnani- srf.fatnani@yahoo.co.in]


Deduction u/s 80C towards tuition fees payment of the child is available to the parents who have paid the amount. Without payment by the parent (mother or father), deduction could not be claimed. In your specific case, if she has made the partial payment of the fees, she can also claim deduction u/s 80C towards tuition fees payment. Effectively, both the parents can simultaneously claim the deduction towards the tuition fees of the child for the respective amount paid by them.


Query 3]

I am in the process of acquiring an under construction immovable property worth Rs. 40 Lacs, for which I have paid around Rs. 10 Lacs including registration and stamp duty. I have filed IT return for AY 2014-15 without above transaction. My query is, am I eligible for rebate under IT? How can I modify my return? If yes, do I need to seek the permission of income tax officer for modifying the return? [barve_shailendra@yahoo.com]


Deduction towards interest on housing loan taken merely for purchase of under construction structure is not eligible for deduction.  Only after the completion of the construction of house, deduction would be admissible. Interest of pre-construction period is deductible in five equal annual installments commencing from the year in which the construction is completed. There is no such stringent bar towards claiming a deduction u/s 80C against Stamp duty/ registration expenses & principal repayment. Deduction could be claimed even if the house property is incomplete.

Taxpayers have an option to revise the income tax return if there is/are some error, omission or wrong statement etc in the original return. Revise return can be filed any time within one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. However, option to revise the return is available with the taxpayer only if the original return is filed within the DUE DATE of filing & not otherwise. No prior permission from the authorities is required for revising the return.

[button color=”” size=”” type=”round” target=”” link=”https://thetaxtalk.com/”]home[/button]  [button color=”” size=”” type=”round” target=”” link=”https://thetaxtalk.com/submit-article-publish-your-articles-here/”]Submit Article [/button]  [button color=”” size=”” type=”round” target=”” link=”https://thetaxtalk.com/discussion-on-tax-problem/”]Ask Question [/button]

Home page button