receiving property as a gift

Frequently Asked Questions, fAQ - Capital Gains, Losses, and Sale of Home.
Publication 225 - Farmer's Tax Guide - Basis Other Than Cost.
The property may also be subject to wealth tax.
For instance, if an NRI owns a property in the US and gets one as a gift in India, will he be subject to wealth tax on the property in India?In the US for instance, individuals are subject to estate tax.Moreover, if the gift was received on the occasion of marriage or from a registered trust, it may be exempt from this tax.In this article, we see what those implications are.House given on rent for more than 300 days If you have bikini shack discount code given the property on rent for more than 300 days during a financial year, you do not have to pay wealth tax.An NRI or PIO may gift residential and commercial property to person resident in India or an NRI or a PIO.According to the Wealth Tax Act, tax is payable if the net value (market value minus any loans taken to finance the assets) of the assets of an individual exceeds Rs 30 lakh.Specified assets located outside India are subject to wealth tax only in the case of Indian citizens who qualify as 'Ordinary Resident (OR of India as per the IT Act.In such a case, property would continue to belong to the donor for the purpose of wealth tax applicability.
Basis is thus not the current value of the gift, but rather what the donor originally paid for. .
In the case of a gifted property, the general rule is that the donors basis carries over to the donee you. .
What are the implications?However, if the property is an agricultural land, plantation property or farm house, it can be gifted only to a person resident in India who is a citizen of India.To measure loss on a later sale, basis is limited to the (lower) value of the property at the time of the gift. .So you would need to add the fair market value of this property to your total income and pay tax thereof.What are the tax implications on sale of property received as gift?The tax implications of sale of property received as gift are the same as those applicable in case of purchased property.Can an NRI rent out property received as a gift?

You simply cannot write a thank you note and neglect obtaining details on the original transaction. .