Are gifts of immovable property located abroad liable to tax?

Where any person receives, in any previous year, from any person or persons any immovable property,—

  • (A) without consideration, the stamp duty value of which exceeds 50,000, the stamp duty value of such property;
  • (B) for a consideration which is less than the stamp duty value of the property by an amount exceeding Rs 50,000, the stamp duty value of such property as exceeds such consideration:

Following item (B) shall be substituted for the existing item (B) of Section 56(2)(x)(b) by the Finance Act, 2018, w.e.f. 1-4-2019 :

  • (B) for a consideration, the stamp duty value of such property as exceeds such consideration, if the amount of such excess is more than the higher of the following amounts, namely:—
    • Rs 50,000; and
    • the amount equal to 5% of the consideration:

Therefore, gifts whether received from India or abroad will be charged to tax.

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