Legal Question in Tax Law in India

Hi,

I want legal advice on capital gain taxation. I am giving example please let me know my tax liability.

Example: My father get 50,00000(fifty lacs) by selling 30 year old house and he gifts 20,00000(twenty lacs) to me. I use this money to pay my home loan of underconstruction home which I baught 3 years before.

Q1. Does this 20,00000 (twenty lacs) will be taxable and will be added my annual income for tax calculation?

Q2. If 20,00000 (twenty lacs) gift money is taxable then what are the options to save tax?

Please answer my queries. I will be thankful to you.

Thanks & Regards

Sanjay Gupta


Asked on 6/23/14, 11:51 pm

1 Answer from Attorneys
Anbu Elangovan AE Associates

Gifts from relatives :-Gifts received from any relative, as defined under the Act, is not taxable. Relatives include spouse of the individual; brother or sister of the individual; brother or sister of the spouse of the individual; brother or sister of either of the parents of the individual; any lineal ascendant or descendant of the individual; any lineal ascendant or descendant of the spouse of the individual; and the spouse of the person referred to as aforesaid.

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Answered on 6/24/14, 12:58 am


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