Immovable property received as stock in trade by gift in not taxable

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..... It is written in Taxmann s Direct Tax Ready Reckoner Ay 20014-15 and 20015-16 on page no A-208 (Para 77.5) Immovable property received as stock in trade by gift in not taxable neither in the hands of Transferor nor transferee. I am hereby reproduced the said para as under: Immovable property received as stock in trade by gift: X is a dealer in properties. On June 20, 2013, he gets a hous .....

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..... e property by gift for business purpose from A. Stamp duty value of property is ₹ 83 lac. Sec 56(2)(vii) is applicable only when property is received by an Individual or HUF as a capital assets . Since house property in the hands of X is stock-in-trade, nothing will be taxable u/s 56(2)(vii) under the head Income from Other Sources . In the hands of transferor A, it is not treated as tra .....

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..... nsfer {transfer of an assets by gift in not treated as transfer u/s 47(iii)} and transferor will not be chargeable to tax u/s 45. Sec 50C will not have any role to play. If X transfers this property as stock in trade, the cost to the previous owner A will be taken as cost of acquisition of stock in trade. Please refer with special attention clause (d) of explanation of sec 56(2)(vii). Pleas .....

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..... e comment on the opinion given by author (Sh Vinod K Singhania) and advice on the above issue. - Immovable property received as stock in trade by gift in not taxable - Query Started By: - Pradeep Jain Dated:- 18-4-2015 Income Tax - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanageme .....

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..... ntindia.com - TMI - TaxTMI - TMITax .....

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