In the hands of the recipient, i.e., your teacher, the complete stamp duty worth of the house on the date of present will be taxable as revenue beneath section 56(2) beneath the head “Income from other sources”.
By Chirag Nangia
I am employed in a private institute. I’d like to assistance my retired teacher who has no supply of revenue/pension now by gifting her a residence. My intention is to invest in a land and then construct a residence (with or without having a residence loan). Should I register all documents in my name till a present deed is performed on her name? If so, how will my revenue tax calculations be performed till such a present deed? —Mala Karupiya A residence may possibly be constructed and gifted to your teacher for offering help. All documents may possibly be registered in your name till the completion of building of residence house and execution of present deed. As per revenue tax provisions, any transfer of capital asset beneath a present is not regarded as transfer and consequently there will be no capital achieve in the hands of the transferor. However, if any immovable house is received as a capital asset from any particular person other than a relative, without having any consideration, and stamp duty worth exceeds Rs 50,000, then such a transaction is liable to tax. In the hands of the recipient, i.e., your teacher, the complete stamp duty worth of the house on the date of present will be taxable as revenue beneath section 56(2) beneath the head “Income from other sources”. Subsequently, if he/she transfers this house, then the stamp duty worth on the date of present will be taken as the expense of acquisition of this house in her hands.
My husband has invested in Senior Citizen Savings Scheme in my name and pays revenue tax on the interest. How do I report this investment in my name in my ITR? How must I report the interest in my ITR as I comprehend it will be deemed as my revenue although tax is paid by my husband beneath clubbing of spouse’s revenue? —Padma Viswanathan The investment produced by your husband in your name shall be treated as a present. As per I-T Act, a present received from a relative is exempt in the hands of the transferee. You shall be expected to disclose the quantity of investment as exempt revenue in schedule EI of the ITR kind. The interest revenue received on account of investment in SCSS that shall be clubbed in your husband’s total revenue. Your husband shall have to disclose the clubbed revenue in schedule SPI of the Income Tax Return Form. You shall not be expected to disclose the revenue so clubbed.
The writer is director, Nangia Andersen Consulting. Send your queries to