Are there any cases in which the value of immovable property received by an individual or HUF without consideration (i.e. by way of gift) is not charged to tax?

Ans. Stamp duty of immovable property is chargeable to tax, if immovable property is received by an Individual or HUF without any consideration and the stamp duty value exceeds Rs. 50000.

However, in the following cases nothing will be charged to tax in respect of immovable property received on or after 01/10/2009 without any consideration, even if the stamp duty value exceeds Rs. 50,000:

• from any relative or by a HUF from its members; or
• on the occasion of the marriage of the individual; or
• under a will/ by way of inheritance; or
• in contemplation of death of the payer or donor as the case may be; or
• from a local authority as defined under Explanation to clause (20) of section 10 of the Income-tax Act, 1961; or
• from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10(23C); [w.e.f. AY 2023-24, this exemption is not available if property is received by a specified person referred to in section 13(3)].; or
• by any fund, trust, institution, any university, other educational institution, any hospital, other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or  (applicable if the property is received on or after 1^st day of April, 2017)
• from or by a trust or institution registered under  section 12A, section 12AA or section 12AB  [w.e.f. AY 2023-24, this exemption is not available if property is received by a specified person referred to in section 13(3)].; or
• by way of transaction not regarded as transfer:   (applicable if the property is received on or after 1^st day of April, 2017)
• property received by way of distribution at the time of total or partial partition of HUF [sec. 47(i)]  
• property received by an Indian subsidiary company, if the parent company or its nominees hold the whole of the share capital of the subsidiary company [sec. 47(iv)] (Inserted by Finance Act, 2018 i.e. w.e.f 01.04.2018)
• property received by an Indian holding company, if the whole of the share capital of the subsidiary company is held by the holding company [sec. 47(v)]  (Inserted by Finance Act, 2018 i.e. w.e.f 01.04.2018)
• property received by amalgamated company from amalgamating company in the scheme of amalgamation, if amalgamated company is an Indian company. [sec. 47(vi)]
• property received by resulting company from demerged company in the scheme of demerger, if resulting company is an Indian company. [sec. 47(vib)]
• property received by a banking institution from banking company in a scheme of amalgamation of a banking company with a banking institution sanctioned and brought into force by the Central Government under sub-section (7) of section 45 of the Banking Regulation Act, 1949 (10 of 1949)  [sec. 47(viaa)]
• property received by successor co-operative bank from predecessor co-operative bank in a business reorganisation.  [sec. 47(vica)]
• from an Individual by a trust created or established solely for the benefit of relative of the Individual.  (applicable if the property is received on or after 1^st day of April, 2017)
• from such class of persons and subject to such conditions, as may be prescribed.
• From any person, in respect of any expenditure actually incurred by individual on his medical treatment or treatment of any member of his family, for any illness related to COVID-19 (subject to such conditions as prescribed by Govt.).
• By a member of the family of a deceased person, if cause of death is illness related to COVID-19,:

- From the employer of the deceased person; or

- From any other person or persons to the extent that such sum doesn’t exceed Rs. 10 lakh.

Note: The member must receive the payment within 12 months from the date of death of such person and satisfy the following conditions:

(a) the death of the individual should be within 6 months from the date of testing positive or from the date of being clinically determined as a COVID-19 case;

(b) the family member of such individual shall keep a record of the COVID-19 positive report or medical report if clinically determined to be COVID-19 positive through investigation in a hospital or in an in-patient-facility by a treating physician of a person so admitted;

(c) the family member of such individual shall keep a record of a medical report or death certificate issued by a medical practitioner or a Government civil registration office, in which it is stated that the death of the person is related to COVID-19.

(d) the family member furnished a Statement in Form A providing the details of amount received during the year. The statement shall be filed within 9 months from the end of financial year in which the amount is received or 31.12.2022, whichever is later.