Gift Tax Liability

Sag 1
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Dear Pankaj,

My Grand Mother has sold the agriculture land. Can she transfer the LTCG earned out of it to my a/c as gift to me being her grand son. Pls suggest if there is any tax liabilities on both the parties involved??

Also please advice the limit of amount (cash) she can transfer as gift to the grand son??

Can she also transfer plot of agriculture land/flat/apartment/residential house as gift to the grand son. Pls suggest if there is any tax liabilities on both the parties??

How many times during the year she can make the transaction either in monetary or assets transfer to the grand children?

Please advice the proper documentation require to be done as paper work for the same??

gift-tax agricultural-land capital-gains income-tax
1 Answers

Your grandmother would need to pay income tax on capital gains earned, before she gifts the amount to anybody.

She can transfer property on her name to you through a gift/settlement deed and no income tax would be payable on this too.

There won't be any gift tax payable for you or your grandmother as gift is give within relation. There is no limit on amount and number of times it can be done in a year.

In case of amount transfer, a gift deed on plain paper can be made describing amount, date of transfer, signature of both parties and sign of two witnesses.

In case of property transfer, a registered gift/settlement deed needs to be done and there would be a stamp duty payable on this. This stamp duty varies from state to state and you can get to know about same from local court.

Pankaj Batra5212

Dear Pankaj, Thanks for the response!! Can she transfer the LTCG earned to my a/c & let me become responsible of paying income tax or make necessary investment to save income tax on LTCG earned?? Please flash more lights on it.

Also, Can I sale the property/use it for other purpose given to me as a gift by my grand mother or is there any lock in period I am suppose to keep the property??

Sag•

Person who gained from transaction is responsible for paying tax and this liability cannot be transferred to other person's name.

There is no lock-in period on gifted property, you can sell it whenever you want.

Pankaj Batra•
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