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hi i have query regarding the taxation of a property not shown in the books which is pointed below:

A person who has purchased some land from govt in 1986 and had constructed house on it in 1988 but that person has not shown the same property in his books what he has submitted to the income tax deptt. since 1986, assume land was purcased in 15,000 Rs ( he is having the receipt or other document for land purchase) and construction cost was 2,50,000 Rs ( does not have any invoice or bills for construction made on it) assume that person is having income from business & profession.

now he want to sell this property of which the stamp duty value is around 25,00,000. (take this rate for sale consideration)

please let me know whether he can get the benfits of indexation and also please let me know how much amount would be taxable on him under capital gain ?

Hi,

Thanks for your reply.

can you please let me know whether the 3rd query is legal under income tax or gift tax tax. and also if you can site any court judgements on the 3rd or may be similar to the query, if you know.

Thanks in advance for your kind support.

Hitendra Bhatia

Hi I have some questions regarding the taxability of gifts which is pointed below:

1.   Can a person who has not shown some property in his books submitted to income tax deptt, make a gift to his wife or some other person of the said property? Whether this gift would be taxable under income tax act or gift tax act to the donor or donee? Assumptions (that the donor has got that property in 1986 from govt. and since then he has not shown the same in his books of accounts. Current stamp duty value of the same is 24, 00,000)

2.   Take the same thing in above mentioned question whether that person can make a gift of the said property to his wife, then his wife gifts this property to her father's sister (BUA) and then that BUA gifts this to her grand son. What would be the income tax liability on each gift on either donor or donee? Further whether it is advisable to go with this option in the same financial year or to do these transactions in the one by one in subsequent years or one should avoid this option? And further whether as per income tax can the first donor makes this gift directly to the last donor as per relative definition under income tax act which includes lineal ascendants or descendants as a relative. My main objective is to make as minimum to minimum transaction in a legal and smooth way.

3.   (Most Important) Further in the 1st question assume that person has made a un registered gift deed in 1989 to his wife's Bua's son and that Bua's son is in the possession of the said property and the donee has constructed the house on gifted land and the donee has deceased in 2006 and now his legal heirs are in the possession of the same property and now the donor want to make a duly stamped & registered gift deed to the legal heirs of the deceased donee, whether this transaction will attract gift tax or income tax on original donor or deceased donee or surviving donee?