I want to gift my flat to my son. Will there be any tax liability that he or I will incur in this transaction?
An immovable property transferred by a relative, including parents is not treated as taxable
I want to gift my flat to my son. Will there be any tax liability that he or I will incur in this transaction?
Vidya Mohan, Bangalore
An immovable property transferred by a relative, including parents is not treated as taxable. So, when you gift your flat to your son there will not be any tax related implications that you will encounter. However, do make sure the paperwork is in place, including a gift deed that mentions the transfer of the house to your son as a gift from you. In case your son sells or lets out the property, any rental income or capital gains from the same would be taxed in his hands – you will not incur any tax liability. Depending in the state and municipality that you fall in, you will need to check on appropriate registration costs and laws.