{"id":9743,"date":"2023-01-09T13:24:16","date_gmt":"2023-01-09T13:24:16","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=9743"},"modified":"2024-11-25T05:59:46","modified_gmt":"2024-11-25T05:59:46","slug":"gift-tax-on-immovable-property-in-india","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/gift-tax-on-immovable-property-in-india\/","title":{"rendered":"Gift Tax On Immovable Property in India 2025"},"content":{"rendered":"<h2><b>Tax on the gift of Immovable property without consideration<\/b><\/h2>\n<p><span style=\"font-weight: 400\">If the below-mentioned conditions are agreed then immovable property provided without consideration by the person or Hindu Undivided Family (HUF) will need to pay the tax<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Immovable property is provided to an individual or HUF. Whereas, Immovable properties are building or land, or both.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Such immovable property is counted as a capital asset of an individual or HUF within Section 2 (14).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Such without considered immovable property\u2019s stamp duty value should exceed Rs. 50,000.<\/span><\/li>\n<\/ol>\n<h2><b>Exemptions of gift tax on immovable property without consideration<\/b><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-9745 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124437\/Exemptions-of-gift-tax-on-immovable-property-without-consideration.jpg\" alt=\"Gift Tax On Immovable Property in India 2025 - Exemptions of Gift Tax on Immovable Property Without Consideration\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124437\/Exemptions-of-gift-tax-on-immovable-property-without-consideration.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124437\/Exemptions-of-gift-tax-on-immovable-property-without-consideration-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124437\/Exemptions-of-gift-tax-on-immovable-property-without-consideration-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124437\/Exemptions-of-gift-tax-on-immovable-property-without-consideration-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400\">The cases listed below of immovable property gifts will not be considered under the tax slab.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Immovable property received from relatives like<\/span><\/p>\n<ul>\n<li>\n<h3><strong>Individual<\/strong><\/h3>\n<\/li>\n<\/ul>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse of the <\/span><span style=\"font-weight: 400\">person<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Brother or sister of the <\/span><span style=\"font-weight: 400\">person<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse\u2019s Brother or sister of the <\/span><span style=\"font-weight: 400\">person<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Parent\u2019s Brother or sister of the <\/span><span style=\"font-weight: 400\">person<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Recipient\u2018s lineal ascendant or descendent (If any)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse\u2019s lineal ascendant or descendent of the <\/span><span style=\"font-weight: 400\">person<\/span><span style=\"font-weight: 400\">(If any)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse of the individuals referred in (b) to (f)<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400\">\n<h3><strong>HUF<\/strong><\/h3>\n<\/li>\n<\/ul>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided as a gift on the marriage of the recipient. Other than marriage, none of the occasions will be considered for the non-tax payable slab.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is accepted under a will or by way of inheritance<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property was given after the death of the donor.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by the local authority.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by any fund, university<\/span><span style=\"font-weight: 400\">, foundation, related educational institution, medical institution, trust, or institution mentioned in section 10(23C).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by an institution or trust mentioned under sections 12AA, or 12AB.<\/span><\/li>\n<\/ol>\n<h2><b>Income Tax on the gift of Immovable Property by Friend<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-9748 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124947\/Income-Tax-on-the-gift-of-Immovable-Property-by-Friend.jpg\" alt=\"Gift Tax On Immovable Property in India 2025 - Income Tax on the gift of Immovable Property by Friend\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124947\/Income-Tax-on-the-gift-of-Immovable-Property-by-Friend.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124947\/Income-Tax-on-the-gift-of-Immovable-Property-by-Friend-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124947\/Income-Tax-on-the-gift-of-Immovable-Property-by-Friend-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124947\/Income-Tax-on-the-gift-of-Immovable-Property-by-Friend-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400\">As friends don\u2019t come under the relative section, the immovable property provided by friends will come under tax paying slab.<\/span><\/p>\n<h2><b>Gift Tax on Immovable Property located Abroad<\/b><\/h2>\n<p><span style=\"font-weight: 400\">If the above-mentioned conditions are satisfied then the <a href=\"https:\/\/incometaxindia.gov.in\/Tutorials\/18.%20Tax%20treatment%20of%20gifts.pdf\" rel=\"nofollow noopener\" target=\"_blank\">gift of immovable property<\/a> will come under the tax-paying slab even being the property is based in India or abroad.<\/span><\/p>\n<h2><b>Gift Tax On Immovable Property Calculation of without consideration<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Mr. Suresh gifted a house to his friend Mr. Ajay. The market value of the house is Rs. 8,40,000 and the building value added by the stamp valuation authority for stamp duty charges purposes was Rs. 9,00,000. What is the tax implication for this house?<\/span><\/p>\n<p><b>Ans:<\/b><\/p>\n<p><span style=\"font-weight: 400\">Here, this building is a capital asset for Mr. Ajay. He received this building from his friend. Whereas, a friend doesn\u2019t come under the definition of relative. The property was also not gifted on any specific occasion. So, this property will come under tax paying slab.<\/span><\/p>\n<p><span style=\"font-weight: 400\">So, The property\u2019s stamp duty value also exceeds Rs. 50,000. Hence, The property\u2019s stamp duty value i.e. Rs 900000 will come under a tax-paying slab for Mr. Ajay.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The tax will be charged under the slab \u201cIncome from other sources\u201d.<\/span><\/p>\n<p>Also check-out &#8211;\u00a0<a href=\"https:\/\/www.homebazaar.com\/knowledge\/things-to-know-about-80eea-deduction-for-income-tax-on-home-loans\/\">Latest 80EEA Deduction For Income Tax On Home Loans 2025<\/a><\/p>\n<h2><b>Tax on Immovable property received of less than its stamp duty value<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-9749 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09125223\/Tax-on-Immovable-property-received-of-less-than-its-stamp-duty-value.jpg\" alt=\"Gift Tax On Immovable Property in India 2025 \" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09125223\/Tax-on-Immovable-property-received-of-less-than-its-stamp-duty-value.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09125223\/Tax-on-Immovable-property-received-of-less-than-its-stamp-duty-value-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09125223\/Tax-on-Immovable-property-received-of-less-than-its-stamp-duty-value-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09125223\/Tax-on-Immovable-property-received-of-less-than-its-stamp-duty-value-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400\">If the below-mentioned conditions are satisfied then the immovable property is provided to a person or HUF for less than the property\u2019s stamp duty value will come under the tax-paying slab.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Immovable property is owned by an individual or a HUF.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Such immovable property will be considered a \u2018capital asset\u2019 of the person or HUF under section 2(14) of the Act.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Such immovable property is owned for consideration. And the consideration is less than the stamp duty value &amp; the difference is higher than Rs. 50000 and 5 percent of consideration.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400\">Whereas, The Finance Act, 2020 specifies that the safe harbor limit will be 5 percent to 10 percent from the assessment year 2021-22.<\/span><\/p>\n<h2><b>Gift tax Exemptions on immovable property of less than its stamp duty value<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9747 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124733\/Gift-tax-Exemptions-on-immovable-property-of-less-than-its-stamp-duty-value.jpg\" alt=\"Gift Tax On Immovable Property in India 2025 \" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124733\/Gift-tax-Exemptions-on-immovable-property-of-less-than-its-stamp-duty-value.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124733\/Gift-tax-Exemptions-on-immovable-property-of-less-than-its-stamp-duty-value-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124733\/Gift-tax-Exemptions-on-immovable-property-of-less-than-its-stamp-duty-value-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/09124733\/Gift-tax-Exemptions-on-immovable-property-of-less-than-its-stamp-duty-value-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400\">The below-listed cases<\/span><span style=\"font-weight: 400\"> of immovable property provided over less than its stamp duty value will not be considered under the tax-paying slab.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Immovable property received from relatives.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Whereas, relatives in this case will be<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\">\n<h3><strong>Individual<\/strong><\/h3>\n<\/li>\n<\/ul>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse of the <\/span><span style=\"font-weight: 400\">person<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Brother or sister of the <\/span><span style=\"font-weight: 400\">person<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse\u2019s Brother or sister of the <\/span><span style=\"font-weight: 400\">person<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Parent\u2019s Brother or sister of the <\/span><span style=\"font-weight: 400\">person<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Recipient\u2018s lineal ascendant or descendent (If any)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse\u2019s lineal ascendant or descendent of the <\/span><span style=\"font-weight: 400\">person <\/span><span style=\"font-weight: 400\">(If any)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Spouse of the individuals referred in (b) to (f)<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400\">\n<h3><strong>HUF<\/strong><\/h3>\n<\/li>\n<\/ul>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided as a gift for the marriage of the <\/span><span style=\"font-weight: 400\">person<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property<\/span><span style=\"font-weight: 400\"> is provided under a will or by way of inheritance<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property was given after the death of the donor.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by the local authority.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by any fund, university, foundation, related educational institution, medical institution, trust, or institution mentioned in section 10(23C).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by an institution or trust mentioned under sections 12A, 12AA, or 12AB<\/span><span style=\"font-weight: 400\">.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided by any trust\/fund\/university\/hospital\/medical institution or educational institution mentioned in section 10(23C &#8211; iv, v, vi, via).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The property is provided as a transaction rather than a transfer under section 47 (viiac, viiad, viiae, viiaf).<\/span><\/li>\n<\/ol>\n<h2><b>Gift Tax On Immovable Property Calculation of less than its stamp duty value<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Mr. Sachin bought a building from Mr. Avinash for Rs. 25,20,000. The building value considered by the Stamp Valuation Authority for applying stamp duty was Rs. 28,00,000. What is the tax implication for this property?<\/span><\/p>\n<p><b>Ans.<\/b><\/p>\n<p><span style=\"font-weight: 400\">If a person bought an immovable property as a capital asset. The stamp duty value of such kind of property surpasses the actual consideration of Rs 50,000 and 10 percent of the actual consideration. Then the surplus of stamp duty value over the bought rate will be concluded and charged to tax to the purchaser.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The building is a capital asset for Mr. Avinash. The stamp duty value of this property surpassed the actual consideration by Rs. 2,80,000. As it is higher than Rs. 50,000 and 10 percent of the actual consideration of Rs. 25,20,000 which is Rs. 2,52,000.<\/span><\/p>\n<p><span style=\"font-weight: 400\">So, after considering all the Income tax conditions, (Rs. 28,00,000 &#8211; Rs. 25,20,000) Rs. 2,80,000 will be considered as income of Mr. Avinash.<\/span><\/p>\n<p>Also check-out &#8211; <a href=\"https:\/\/www.homebazaar.com\/knowledge\/mcd-property-tax-online-payment-process-and-payment-receipt\/\">MCD Property Tax 2025 \u2013 Online Payment Process &amp; Payment Receipt<\/a><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>What is gift tax on Immovable property in India?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Gift tax on immovable property without consideration of a person or Hindu Undivided Family will need to pay the necessary tax applicable on it.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What is gift tax on immovable property exceptions?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Gift tax on immovable property without consideration exceptions for individuals is property received from relatives like a spouse, brother, sister, parent\u2019s brother, or sister of the person. Immovable property received from such relatives will come under the non-tax payable category.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>How does tax is linked to the stamp duty value of the immovable property?<\/b><\/p>\n<p><span style=\"font-weight: 400\">If the stamp duty value of the gifted immovable property exceeds Rs. 50,000 then an individual will have to pay the tax applicable to it.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Tax on the gift of Immovable property without consideration If the below-mentioned conditions are agreed then immovable property provided without consideration by the person or Hindu Undivided Family (HUF) will need to pay the tax Immovable property is provided to an individual or HUF. Whereas, Immovable properties are building or land, or both. Such immovable [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":9746,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[1885,3114,1884,1882],"class_list":["post-9743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","tag-exemptions-of-gift-tax-on-immovable-property","tag-gift-tax-on-immovable-property-in-india-2024","tag-income-tax-on-gift-deed-of-immovable-property","tag-income-tax-on-gift-of-immovable-property"],"_links":{"self":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/9743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/comments?post=9743"}],"version-history":[{"count":5,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/9743\/revisions"}],"predecessor-version":[{"id":17112,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/9743\/revisions\/17112"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media\/9746"}],"wp:attachment":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media?parent=9743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/categories?post=9743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/tags?post=9743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}