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Gifts

Divya (Studeny) (379 Points)

15 April 2014

Are Gifts in form of Car, AC, jewellery taxable or not??

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SURESHAN K (Auditor) (189 Points)
Replied 15 April 2014

Taxable as per Section 56(2)(vii)(c). But there are certain exceptions they are:

- any sum of money or any property received

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(d) in contemplation of death of the payer or donor, as the case may be; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Divya (Studeny) (379 Points)
Replied 15 April 2014

My ques. Is do I hv 2 pay tax on d gift as a car or ac from my friend if it exceeds 50000??

SURESHAN K (Auditor) (189 Points)
Replied 15 April 2014

That will depend upon your total income. e.g. you have received a gift, say jewellery worth 1,00,000/- and you have no other income then your total income is 1,00,000/- which is below the maximum limit of income not chargeable to tax (basic exemption). hence no tax is payable.

Divya (Studeny) (379 Points)
Replied 15 April 2014

Dats ok...I agree 2 ur point...Bt still My query has not got its ans..Wat abt Car nd ac??

SURESHAN K (Auditor) (189 Points)
Replied 16 April 2014

If you got Car (value say 500000) and AC ( value say 24000) as gift during FY2014-15 and have no other income then your total income is 5,24,000/-. You have to pay Rs.35,844/- towards IT including cess.