Question ID :
39353
GIFT
Assessee has received the immovable property under Gift from her relative. The gift is registered Having a DLC Rate of 2 Crores. The relation is not covered under the definition of Relatives under Sec 56 of income tax act. My Query is what will be the value of Gift in the hands of the receipient
1 Will it be the cost of previous owner as per Sec 49
2 Will it be DLC Rate at which the property is registered with registering authority.
Posted by
VIPIN GUPTA
on
Aug 18, 2019
Filed Under
DIRECT TAXES
Value of gift will be DLC rate. At the time of sale of property cost of acquisition will be cost to previous owner.
Posted by
CA. chunauti dholakia on
Aug 19, 2019
Answer ID :
79132
Refer provisions of sec. 56(2)(x). In the instant case, income taxable in the hands of recipient will be stamp duty value.
Posted by
CA PRADEEP C B on
Aug 19, 2019
Answer ID :
79137
Hi Mr. Vipin,
The value of the gift taxable in the hands of the recipient would be DLC rate (stamp duty value) as per section 56(2)(x) of the Income tax Act, 1961. Also, for the purpose of computation of capital gains at the time of transfer of such asset by the recipient (relative), DLC rate would be treated as cost of acquisition in the hands of the recipient as per section 49(4) of the Act.
Posted by
ASHWIN RAO VARANASHI on
Aug 20, 2019