Inheritance Tax Query: Can My Mother Gift Me 30 Lakhs From Land Sale?

Ans: No, proceeds of sales of shares will not be considered as Income as gift is received from "relative".

Ans: Your Mother may have to pay short term or long term capital gain tax on the land sale transaction.

The tax will depend on period for which land property was held in her name and cost of (indexed cost if long term)acquisition.

Mother giving cash gift to her son is not taxed but the income you may derive from this lumpsum cash gift is taxable.

For working out detailed modalities of this tax liability please consult a CA/tax advisor.

Ans: There is no gift tax in India, but the amount received as a gift is taxed under the Income Tax Act, 1961 as "Income from Other Sources" unless exempted.

Tax Implications on Gift from Sister
Gifts from specified relatives (including a sibling) are fully exempt from tax under Section 56(2)(x) of the Income Tax Act.
Since your sister is a specified relative, the Rs. 49 lakhs gift will be tax-free in your hands.
Your sister will also not have to pay any tax on the gifted amount, as India does not have a separate gift tax.
Important Points to Ensure Tax Compliance
The transaction should be done through a bank transfer to maintain a proper record.
A gift deed is recommended (on stamp paper) to legally document the transaction.
There are no tax deductions for the giver, meaning your sister cannot claim this gift as an expense.
Final Answer
No gift tax is applicable since the amount is received from a sister.
You do not have to pay income tax on the received gift.
Your sister will also not have any tax liability on gifting the amount.
Let me know if you need more clarification!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment