DEAR SIR. I'M KUMAR. I HAD PURCHASED A PLOT MEASURING 200 SQ YARDS IN 2005 IN HYDERABAD. DUE TO UNAVOIDABLE REASONS I COULD NOT COME TO HYDERABAD AND PLOT WAS REGISTERED ON MY MOTHER'S NAME. THEREAFTER IT WAS TRANSFERRED TO MY NAME AS GIFT DEED FROM MY MOTHER. 1. DO I HAVE TO PAY ANY PROPERTY TAX OR ANY TAX FOR THIS VACANT PLOT. 2. MY MOTHER IS NO MORE. IS THE GIFT DEED VALID. 3. CAN I SELL THIS PLOT. IF YES, DO I HAVE TO PAY ANY TAX
Ans: 1. As far as Income Tax is concern, if no construction house property is done on plot of land, concept of deemed rent is not applicable. Therefore, no income tax is likely to applicable on vacant plot of land without any income.
2. Yes, gift deed is valid even after death of gift giver
3. On transfer of plot, you have to pay capital gain tax and amount paid at the time of acquisition is considered cost in your hand