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May 15, 2025
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Income tax on gifted property: NRI step-brother to pay zero income tax on Rs 7.5 crore property
The Income Tax Appellate Tribunal (ITAT) Mumbai recently exempted an NRI step-brother from paying any income tax after the tax department added Rs 7.88 crore income in his Income Tax Return (ITR) on which they asked him to pay the appropriate income tax. In this case, the step-brother received a property completely free of cost in Mumbai from his step-sister as a gift in 2016. This Mumbai property originally belonged to their father and he gifted to her in 2003. Moreover, the property’s stamp duty of Rs 38.3 lakh was also paid by the stepsister herself when she gifted it to him. In 2021 he tried to sell this property and this is when the issue caught the income tax department's attention.
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