Query on Gift U/s 92 of Income Tax Act,2025.

[Amundhra]

I need your advice on a family property transaction for this financial year (FY 26-27). Here are the exact facts of the case:

The Transaction: My dad is receiving a land parcel as a gift from his aunt without consideration.

Financial Values: The land is sitting in the donor's books at a historical cost of Rs. 15,000, but the current statutory Stamp Duty Value (SDV) is Rs. 2 Crores.

The Legal Twist: When my dad was 15, he was legally adopted by this exact same uncle (the donor's husband), and we have a registered adoption deed for it.

The Mismatch: His official identity documents (PAN, Aadhaar, etc.) were never updated after the adoption-they all still carry the name of his biological father.

Given these facts, I want to ask you a few questions regarding the exact taxability of this transaction under the Income Tax Act, 2025:

If the IT department goes strictly by his current PAN/Aadhaar IDs, the donor is his biological uncle's wife. Does she qualify as an exempt relative under the new Act?

If the registered adoption deed is taken into account, the donor legally becomes his adoptive mother. Does that change or complicate the relative exemption?

Considering the document mismatch between the adoption deed and his current KYC, is this transaction completely tax-exempt, or could it trigger a major tax liability? How should we legally frame the relationships in the Gift Deed to keep it safe at the Sub-Registrar's office?

Also, regarding bookkeeping, how much should we record this land at in my father's balance sheet? Should we bring it in at the donor's cost of Rs. 15,000, or can we record it at the Rs. 2 Crore i.e. the stamp duty value on which the tax is paid to the registrar.

AI Summary

Relative exemption for gifted land depends on legally established family relationships and clear supporting documentation, not identity-record nomenclature.
Gifts of immovable property received without consideration ordinarily attract taxation by reference to stamp duty value unless received from a qualifying relative. The donor's status as the wife of the donee's biological uncle, and additionally as adoptive mother under a valid registered adoption, may support the relative exemption. KYC records do not alone determine the legal relationship, but the gift deed should clearly record and support both relationships. Stamp duty value is not automatically tax cost or accounting carrying value; prior owner's cost generally remains relevant for future capital gains, while accounting treatment depends on classification and applicable standards.