I need to present cash to my elder brother. What would be the tax implications. Can I additionally present immovable property to my brother?
— Name withheld on request
Gifts inside kinfolk are exempted beneath part 56 of the Income Tax (I-T) Act 1961 . Further, a brother qualifies as a ‘relative’ beneath the I-T Act. Therefore, any present by you to your brother can be exempt from taxation in your brother and your self. As regards gifting of immovable property, the identical will even be exempt from tax beneath the I-T Act. However, for the present to be efficient, the present deed must be duly stamped and registered.
My father died intestate abandoning some shares in bodily format. These shares are in my possession. I need to share these property equally with my sister, however she isn’t cooperating in getting this completed. Under the circumstances, what’s the answer for getting the property transferred.
— Name withheld on request
In this case, assuming there is no such thing as a different authorized inheritor, as per part 51 of the Indian Succession Act 1925, you and your sister might be entitled to your father’s property/property in equal proportion. Do word that authorized possession and entitlement is completely different from possession (bodily or in any other case).
As regards getting the shares transferred, the way of the non-cooperation of your sister is unclear. Also, your question appears to point that your father had not filed any nomination in relation to the shares. The course of for transmission of the shares might be guided by the articles of affiliation of the corporate and any nomination that could be in place, after complying with the requisite course of.
Broadly talking, that title to the shares might be full as soon as your place as a authorized inheritor is crystallized. Appropriate proceedings for acquiring grant of letters of administration or a succession certificates could also be filed earlier than the related courtroom, relying on the recommendation of your lawyer. Such proceedings will be filed by you, nonetheless, the identical will embrace issuance of discover to your sister, who additionally must be on board with this method. If your sister doesn’t object to the identical, the grant will be issued in your identify. Once the letters of administration/succession certificates is obtained, you possibly can method the corporate and get your entitlement (i.e., 50% shares) transferred in your identify.
Rishabh Shroff is accomplice, Cyril Amarchand Mangaldas.
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