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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Other Products

Caselet: Mr Kapoor, a resident individual, receives a gift of a house property from a non-relative. Stamp duty value is Rs 8,00,000 and no consideration is paid. What is the tax treatment in his hands?

The full Rs 8,00,000 is taxable as income from other sources. Immovable property received without consideration from a non-relative is taxed at stamp duty value when that exceeds Rs 50,000, and the entire value, not just the excess, is included.

  1. ANot taxable because it is immovable property
  2. BRs 8,00,000 is taxable as income from other sourcesCorrect
  3. COnly Rs 3,00,000 above Rs 5,00,000 is taxable
  4. DTaxable only when he sells the property

Explanation

Immovable property received without consideration is taxable at its stamp duty value if that exceeds Rs 50,000, and here the value is Rs 8,00,000. The whole value is taxed, not only the excess. The exemption applies if received from a relative, which a non-relative is not.

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