Question ID :
44439
TAXABILITY U/S.56(2)(VI)
Taxability U/s.56(2)(VI)
Dear Colleagues
Please clarify on the following points:
Whether a Male Donor can settle his Immovable Property infavour of his Grand Daughter (Daughter’s Daughter) and claim exemption 56(2) of the Income Tax Act. Assuming the Sub Registrar collects Stamp Duty on the Settlement Deed on treating it as Sale of Property, whether the assessee would be denied exemption on this account?
A.S. Raman
Chartered Accountant
Posted by
A S RAMAN
on
Mar 08, 2023
Filed Under
DIRECT TAXES
Grand daughter is covered under the definition of "relative" under section 56. Hence exemption cannot be denied for transfer of property to daughter's daughter.
Posted by
CA. chunauti dholakia on
Mar 09, 2023
Answer ID :
83944
Here stamp duty is levied equivalent to sale deed. So to prove that it is a gift to be considered under 56(2)(vii) / (x), consideration is not passed on in the documentation has to be established since issue can be debatable.
Posted by
B.CHACKRAPANI WARRIER on
Mar 10, 2023