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Income Tax Exemptions & Property Transfer Fees in Uttar Pradesh & Delhi, Study notes of Civil Law

Information on the income tax exemptions for gifts in india, focusing on the value limits and exceptions for gifts of money and immovable property. Additionally, it covers the stamp duty and registration fees for transferring immovable property in uttar pradesh and delhi, including details on the rates for male, female, and joint owners.

Typology: Study notes

2020/2021

Uploaded on 04/12/2021

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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.
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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, If money is received from family members or relatives Gift of immovable property Value of stamp duty on immovable land or property exceeds ₹ 50, 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, 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, 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.

The female homeowners, however, may avail a discount of Rs 10,000 on the final amount payable. In case the property is jointly owned by male and female partners, a rebate of Rs 5000 can be availed. Stamp duty and registration charges in Uttar Pradesh Gender Stamp Duty rates Registration Charges Male 7 percent 1 percent Female 7 1 percent (a rebate of Rs 10, available on the final amount payable) Joint (Male + Female) 7 percent 1 percent (a rebate of Rs 5, available on the final amount payable) Joint (Male + Male) 7 percent 1 percent Joint (Female + Female) 7 percent 1 percent (a rebate of Rs 10, available on the final amount payable) STAMP DUTY & REGISTARTION FEE IN DELHI To gift immovable property, we have to draft the document on a stamp paper, have it attested by two witnesses and register it. Registering a gift deed with the sub-registrar of assurances is mandatory as per Section 17 of the Registration Act, 1908, failing which the transfer will be invalid. Registration fee is 1% of the total value+Rs.100/- pasting charges