When you receive a property as gift, what is the RPGT and Stamp Duty treatment?
Now, this is a tricky thing. Is it a gift for the below relationship?
If YES, it is treated as “No Gain No Loss”. If not, there is no “Love & Affection” but still treated as “Gift”. Now, under Gift – where there is no consideration paid, market value will be used. This is mentioned in Sch 2, Para 9 of Real Property Gains Tax Act, 1976.
(a) where he acquires or disposes of the asset otherwise than by way of a bargain made at arm’s length and, in particular, where he acquires or disposes of it by way of gift:
This might be situation where a debt is settled by a payment in the form of gift. Or when the value of the property cannot be valued, etc., the Director General of LHDN can use his discretion to determine the value of the property transacted under the Anti-Avoidance provision of the RPGT Act 1976.