| Question And Answer | |
|---|---|
| Subject: | GIFT OF LAND BY DEALER IN REAL ESTATE TO HIS FATHER |
| Category: | Income-Tax |
| Querist: | Rajendra Kumar Dhandia |
| Answered by: | Law Intern |
| Tags: | Gift |
| Date: | November 21, 2025 |
ASSESSEE IS ENGAGED IN BUSINESS OF REAL ESTATE AND HAVE LAND AND BUILDING IN HIS STOCK IN TRADE. HE WANTS TO MAKE GIFT OF A LAND TO HIS FATHER. WILL THIS BE TAXABLE AS BUSINESS INCOME IN THE HANDS OF DONOR ,IF YES, THEN AT WHAT VALUE.
U/s 45(1A), the gift of land (stock-in-trade) by a real estate dealer to his father is taxable as business income in the hands of the donor (assessee) at Fair Market Value (usually guideline/stamp duty value) minus cost of acquisition.
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