r2i forum

OP,
- First make sure the gift deed to your wife is properly registered in correct jurisdiction.
- next make sure you get encumbrance certificate, Patta/Katha in your wife name
- i am not sure if you really wish to include in your name in the land records or having your wife as legal owner is sufficient. If the later is fine, you dont need to do any more. Make sure you have physical possession of the property and pay the property taxes on time.

- assume you (yourself) want to become co-owner of the property. Your wife can give a gift of that 50% to you through a settlement deed ( again register that too !). Make sure again all land records are transferred to your name.

- if the property is earned by your FIL on his own savings, there is nothing to worry about. He has all right to give to his daughter. His son can't create any issue. He can utmost shout or throw one or two stones in your direction, that is all..

RRK;463362
- assume you (yourself) want to become co-owner of the property. Your wife can give a gift of that 50% to you through a settlement deed ( again register that too !). Make sure again all land records are transferred to your name.

RRK, such a process has tax consequences. The transfer of 50% share in the name of husband from wife can take place as follows:

1. As a gift
2. For consideration of value.

If as a gift, then the gift is not tax free to spouse in India (correct?), this means the gift will be taxed as income in hands of receiver.

If the transfer is not a gift but for consideration, then it would be deemed as a sale and husband provide equivalent value (50% value of property) to wife in cash. If wife has no other income and income producing assets to her name, this can have future tax savings as income from this amount would use of wife's tax exemption.

I am stating above based on what I know of Indian tax laws. Is the above correct, RRK?

Desi;463370RRK, such a process has tax consequences. The transfer of 50% share in the name of husband from wife can take place as follows:

1. As a gift
2. For consideration of value.

If as a gift, then the gift is not tax free to spouse in India (correct?), this means the gift will be taxed as income in hands of receiver.

If the transfer is not a gift but for consideration, then it would be deemed as a sale and husband provide equivalent value (50% value of property) to wife in cash. If wife has no other income and income producing assets to her name, this can have future tax savings as income from this amount would use of wife's tax exemption.

I am stating above based on what I know of Indian tax laws. Is the above correct, RRK?

Desi,

No. The gift between husband and wife are not taxable. If there is an income arise out of the gift that is clubbed to the donar.
For example, I can give 10L to my wife. It is not taxable. But if she puts the money in fixed deposit, the interest from FD is taxable to me.

In this case, since it is land is what being gifted, there are no tax issues.

For settlement deed, there will be a registration charge of 1% or 15,000 or some fees like this. This depends on the state regulation, and vary from state to state.

RRK,

Thanks for the clarification. This means my posts above have errors. I hope the readers read the thread in full or they may walk away with some incorrect info from my posts.

RRK, Please add the following admin note in the first post.

ADMIN NOTE: Please read the entire thread for correct information, as there is some misleading information is a couple of posts.

Desi;463587RRK,

Thanks for the clarification. This means my posts above have errors. I hope the readers read the thread in full or they may walk away with some incorrect info from my posts.

RRK, Please add the following admin note in the first post.

ADMIN NOTE: Please read the entire thread for correct information, as there is some misleading information is a couple of posts.

Thanks, I added the note.

A forum like this helps all of us to learn from each other. Your recommendation of reading a full thread is important for all threads, just not this alone.