GIFT in kind received by daughter

[santosh sabat]

Dear Sir/Madam,

I have a query regarding gift (a house property) received by a married daughter from his father out of her love and affection.    her father paid the whole purchase of cost of Rs.50.00 lakhs and get registered the said property in the name of his daughter.

What would be implication U/s 56 of the income tax whether gift in kind is exempted or taxable?

What treatment should be made U/s 64 clubbing provision towards rent received by the daughter ??

Your reply will highly solicited.

regards

[CAGOPALJI AGRAWAL]

The gift made to daughter whether in cash or in kind would not be taxable nor clubbing provision would apply.

AI Summary

Gift in kind from parent to married child is not taxable and rental income is not clubbed with the donor's income. The transfer of a house from a father to his married daughter as a gift out of love and affection is not taxable under the gift provisions; rent arising after transfer is taxable in the daughter's hands and is not clubbed with the father's income under clubbing provisions.