Taxability of gift

The change in the rule related to gifts says that the receiver has to pay tax for receiving any gift valued at Rs.50,000 and more. The ‘any gift’ clause means that not only cash but all gifts of any value. So if someone receives a gift of a house worth Rs.30 lakhs, then he/she is automatically in the highest income bracket and has to pay 30% + surcharge on value of the house as tax (close to Rs.10 lakhs in this case).

**The rule thus effectively prevents money laundering in the guise of high value gifts.**

There is exemption for gifts received from certain people. The gifts that one receives from relatives on the occasion of marriage, the gifts receives from parents and grand parents, the gift received by a daughter-in-law from her parents-in-law, and gifts received by way of a will and inheritance are exempt.

The gifts received by a son-in-law from his parent-in-law will be taxed.

An NRI can gift to his/her parents in India from their NRE account without their parents suffering any tax.

The gifts received in the names of one’s minor children will be clubbed with the parents’ income for taxation purpose. Also the taxman is very alert in saying that, in case of both parents having income, clubbing will be done with that parent who is earning more. So one cannot hide under the cover of their minor child(ren) receiving the gifts.

More details read this article :-

https://www.thinkplaninvest.com/2009/01/income-tax-exemption-and-rules-on-gifts-as-income-of-source/

Read out income from salaries and income from other sources.

taxation varies and few are not taxable

DEPENDING ON THE SITUATION WHEN A PERSON HAS RECEIVED GIFT DURING MARRIAGE OR ANY OTHER.

any gift received by employee from employer is taxable under the head salaries as perquisites..

the rule is as follows:

The perquisite value in respect of any gift, or voucher, or token in lieu of which such gift may be received by the employee or member of his household from the employer, not liable to pay fringe benefit tax, shall be the sum equal to the amount of such gift, voucher or token. However, no perquisite value will be taken if the value of such gift, voucher or taken is below Rs. 5000- in the aggregate during the previous years.

Completely Agree Wid Pooja Ma'am....................

Gift by employer to employee being a perquisite is taxable as per Rule 3 of the Income Tax Rules. But, if the aggregate amount of gifts is below Rs. 5000 during the previous year, the value of perquisite will be 'nil'.

                         As per provisions of Income Tax Act,1961

  Gift Income normally classified in to 3 categories

a) Cash gift 

b) immovable Property (land or building or both)

c) Other specified assets (bullion ,jewellery ,any art of work,shares and securities ,sculptors,drawings,archeological things)

                       are exceeds 50000 in relavant prevous year 

                             however  gifts like tv, computer ,camera not specified any where in the Act,1961.So as per my opinion may not be taxable in the hands of recevier 

Hi,

Property for the purpose of taxation as gift includes:

1) cash 

2)immovable property

3)shares and securities

4)archaeological collections

5)drawings 

6)paintings

7)sculptures

8)any work of art

9)bullion

hence  gifts like tv, computer ,camera given by employer to employees are not taxable as gifts.

but if the value of gifts given to each employee exceeds Rs. 5000 , it would be taxable as perquisite in the hands of employees.

  Dear Ankita,

        I Agree completly with u ,

       Sec 56(2)(vii) this section exhaustive in nature. this section applicable to only individual and HUF  -

            Property for the purpose of taxation as gift includes:

1) cash 

2)immovable property

3)shares and securities

4)archaeological collections

5)drawings 

6)paintings

7)sculptures

8)any work of art

9)bullion

     As per above mentioned gifts  receivable cash  / kind exceeds 50000, irrespective of receivable amount full receipt  is taxable 

         hence  gifts like tv, computer ,camera given by employer to employees are not taxable as gifts. Because sec 56(2)(vii) the above mentioned things no where specified under this section

              A part from above ,  

                     individual And HUF recevies any gift not taxable 

                  so tv,computer,camera given by the employer to the employee (irrespective its value) not taxable in the hands of employee 

Dear saurabh if you dont know about the taxation laws, rules and circulars then please dont misguide other people. Problem is diferrent and you are answering diferrent.

And miss ankita and mr ravi the problem is Whether gifts like tv, computer ,camera given by employer to employees is taxable or not...?

You dont need to go to section 56 bcoz this section is not related to this problem.

In this problem there is employer and employee relationship, and any transaction between them will be covered under the head salary. So any moveable asstes transfered or given as a gift by employer to employee will be treated as perquisites and value of that perquisite will be taxable in the hands of employee.

Richa i hope this will help you.