Capital Gains - Transfer of property versus Gift - A case of ignorance of assessee. In such cases people handling matters must be more careful and helpful to clients

Capital Gains - Transfer of property versus Gift - A case of ignorance of assessee. In such cases people handling matters must be more careful and helpful to clients https://www.taxtmi.com/article/detailed?id=7593 When a property is transferred at a price materially lower than market value, and the parties are close relatives with token or unpaid consideration, the excess of market value over stated consideration operates as a deemed gift affecting capital gains and gift taxation. Advisers must ensure correct document characterisation and supporting evidence: absent a rectification deed, separate gift deed, or an express partial-gift clause, authorities and tribunals are bound to treat the transaction according to the executed sale deed. Proper drafting and documentary proof can prevent adverse tax assessments and appeals. en-us Sat, 02 Sep 2017 10:22:38 +0530 Sat, 02 Sep 2017 10:22:38 +0530 TaxTMI RSS Generator Capital Gains - Transfer of property versus Gift - A case of ignorance of assessee. In such cases people handling matters must be more careful and helpful to clients https://www.taxtmi.com/article/detailed?id=7593 When a property is transferred at a price materially lower than market value, and the parties are close relatives with token or unpaid consideration, the excess of market value over stated consideration operates as a deemed gift affecting capital gains and gift taxation. Advisers must ensure correct document characterisation and supporting evidence: absent a rectification deed, separate gift deed, or an express partial-gift clause, authorities and tribunals are bound to treat the transaction according to the executed sale deed. Proper drafting and documentary proof can prevent adverse tax assessments and appeals. Articles Income Tax Sat, 02 Sep 2017 10:22:38 +0530 https://www.taxtmi.com/article/detailed?id=7593