Gifts of immovable property under the Income Tax Act are taxed if the value of all gifts received without consideration exceeds INR 50,000. If the following conditions are satisfied than immovable property received without consideration by an individual or HUF will be charged to tax.
- Immovable property, being land or building or both, is received by an?individual/HUF.
- The immovable property is a capital asset within the meaning of?section 2(14) for such an individual or HUF.
- The stamp duty value of such immovable property received without consideration exceeds?Rs. 50,000.
In following cases, gift of immovable property will not be charged to tax.
- Property received from relatives.
- Property received on the occasion of the marriage of the individual.
- Property received under will/ by way of inheritance.
- Property received in contemplation of death of the donor.
- Property received from a local authority [as defined in Explanation to section 10(20) of the Income-tax Act].
- Property received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10(23C) [w.e.f. AY 2023-24, this exemption is not available if property is received by a specified person referred to in section 13(3)].
- Property received from a trust or institution registered under section 12AA or section 12AB [w.e.f. AY 2023-24, this exemption is not available if property is received by a specified person referred to in section13(3)].
