Income tax applicable to the gifted properties
According to the Income-tax laws, the value of the gifts received by the person during a
year is fully exempt, as long as the total value of the gifts received in a year is limited to Rs
50,000. If the value of the gifts exceeds Rs 50,000 then the gifts become taxable without
any threshold exemption.
The Income Tax laws give special treatment to the gifts exchanged between the relatives.
The gift (moveable or immoveable) exchange between two close relatives i.e.
mentioned under section 56(2) of the Income tax act is fully exempted from tax
bracket without any upper limit. Close relatives include parents, spouse, siblings,
siblings of the spouse, lineal ascendants and descendants of the person or their
siblings.
Tax On Gifts Gift Tax Meaning Exemptions
Gift of money Cash received as gifts
exceeding ₹ 50,000
If money is received from
family members or
relatives
Gift of immovable
property
Value of stamp duty on
immovable land or
property exceeds ₹
50,000
The recipient inherits the
property
Gift of property
other than an
immovable
property without
consideration
Any property (jewellery,
shares, drawings, etc.)
other than an immovable
property without
consideration exceeds ₹
50,000
Gifts are received on
occasions such as
marriage or contemplation
of death
Gift of property
other than an
immovable
property with
consideration
If the fair market value of
such property exceeds ₹
50,000
If the property is received
from a local authority,
educational or medical
institutions, trusts under
Section 12AA Income Tax
Act
Stamp duty and registration charges in Uttar Pradesh
Previously the registration charges in Uttar Pradesh for properties priced within Rs 10 lakh was two
percent, whereas properties above Rs 10 lakh attracted a registration fee of Rs 20,000. However, in
February 2020, the State government hiked the registration fee to one percent for properties across
the budget.
