Are there any cases in which immovable property received by an individual or HUF for less than its stamp duty value is not charged to tax?

Ans. In the following cases nothing will be charged to tax in respect of immovable property received either for less than or more than its stamp duty value:

• • 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); 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 a trust or institution registered under  section 12AA ; or
  • from a trust or institution registered under section 12A (applicable if the property is received on or after 1^st day of April, 2017); orby way of transaction not regarded as transfer:   (applicable if the property is received on or after 1^st day of April, 2017)

1. property received by way of distribution at the time of total or partial partition of HUF [sec. 47(i)]  

2. 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)

3. 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)

4. property received by amalgamated company from amalgamating company in the scheme of amalgamation, if amalgamated company is an Indian company. [sec. 47(vi)]

5. property received by resulting company from demerged company in the scheme of demerger, if resulting company is an Indian company. [sec. 47(vib)]

6. property received by a banking institution from banking companyin 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)]

7. 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)