No tax on property gifted by grandparent

Photo: iStock

My grandmother gifted me two flooring of her home on 10 April 2017. The circle fee is 55 lakh every. Do I want to say it whereas submitting my tax returns?

—Dilip Saksena

Since you’ve gotten acquired the present from a specified relative (i.e. your grandmother), the switch of this property wouldn’t appeal to tax. It will be advisable so that you can doc the present in a authorized doc viz. a present deed and place it in your information. You’ll need to judge if there are any stamp obligation implications.

In case your taxable revenue for FY18 exceeded 50 lakh, you might be required to reveal the worth of belongings and liabilities held by you as on 31 March 2018. If this reporting is relevant to you, you would wish to incorporate the associated fee at which your grandmother acquired the 2 flooring within the mentioned Schedule. The place such price shouldn’t be out there and no wealth tax return was filed in respect of such asset by her up to now, the circle fee as on date of gifting the identical to you or as on 31 March 2018 will be thought-about for such reporting.

My spouse is a salaried worker and invests in futures. She made a lack of about 90,000. For FY18, which revenue tax return type would she want to make use of—ITR-2, ITR-3 or ITR-4? Does she require a enterprise audit to be performed?

—Identify withheld on request

The classification of revenue/ loss arising from buying and selling in futures and choices on a recognised inventory in India wants cautious analysis. Such analysis will must be made on the premise of varied components like frequency of buying and selling, nature of investments, quantity of transactions undertaken by your spouse and such different components. Accordingly, the mentioned revenue/loss will be taxed both as enterprise revenue/ loss (non-speculative) or capital good points/ loss.

In case the revenue/loss arising from buying and selling in futures and choices is handled as enterprise revenue, your spouse might want to use ITR-3. Additionally, a tax audit is required provided that the turnover exceeds 1 crore. There’s a technique prescribed by the Institute of Chartered Accountant of India (ICAI) for computing such turnover.

If this revenue/loss is handled as a capital acquire/loss, your spouse might use ITR-2. Additionally, no tax audit could be required in such a case, no matter the quantum of turnover.

To learn extra queries, click on right here

Parizad Sirwalla is associate and head, international mobility providers, tax, KPMG in India.

Subscribe to Mint Newsletters

* Enter a legitimate electronic mail

* Thanks for subscribing to our publication.

By no means miss a narrative! Keep linked and knowledgeable with Mint.
our App Now!!

Supply hyperlink

Leave a Reply

Your email address will not be published. Required fields are marked *