Gift
Querist : Anonymous
so if a individual is gifting to company shares, gold, cash, etc then is it exepmt....
Querist : Anonymous
Querist : Anonymous
plus a company cannot accept immovable assets as gifts...please refer section 122 of the Transfer of the Property Act, 1882 requires that transfer of property by way of gift must be accepted by the donee and inter alia such acceptance must be made during life time of the donor and before the donee dies. The provisions using the words like death of donee are logically in the context of an individual and not in the context of an artificial person. In such a view of the matter, it is not possible for a company to claim gift and therefore receipts of sums of money without consideration may not escape taxation in the hands of a company under other provisions of the Income Tax Act, 1961.
So I don't think company can claim it as a gift.
refer file at
https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&uact=8&ved=0CEsQFjAG&url=http%3A%2F%2Fxa.yimg.com%2Fkq%2Fgroups%2F11488745%2F1278243071%2Fname%2F2.Budget10%2BGifts%2Cdeemed%2Bgifts%2Cdeemed%2Bundervaluations.doc&ei=pYiXU5TkFYrn8AXmsYGgBw&usg=AFQjCNHkX5A18Pfa-G-F05jAd5wBv4BucQ&bvm=bv.68693194,d.dGc
Querist : Anonymous
but it arosed in me 1 more doubt....the doubt is....
the link you had shared tells....
A gift necessarily involves a contract because the gift to be valid and complete has to be accepted by the donee to be valid and complete. Section 25 of the Indian Contract Act, 1872 lays down a very basic law that a contract without consideration is void ab initio. Relevant exception for the contract to be valid without consideration is for an agreement in writing, registered under the provisions of the Registration Act, 1908 and such an agreement is on account of natural love and affection. The section does not affect to the gift actually made by the donor to the donee.
if this is the situtaion then all the gift given to company/firm is void ab inition as there is no consideration nor love & affection....
in that situation what is the need to introduce section 56(2)(viia)
2. Thus, 56(2)(viia) comes into picture.
Querist : Anonymous
Click here to login now
Similar Resolved Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
