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Querist : Anonymous (Querist)

25 November 2010 if huf received gift are exempted from tax?

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
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25 November 2010 Example :
(i) Gifts received by doctors from their patients is taxable under the head Profits and
Gains from Business or Profession.
(ii) Any sum of money or value of property received without consideration or for
inadequate consideration by an individual or a HUF from any person, other than a relative,
is chargeable under the head “Income from Other Sources” [For details, refer to Chapter 8
on “Income from Other Sources”].

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Divya

Divya (Expert)
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25 November 2010 Gifts received in cash by an individual or Hindu Undivided Family in excess of Rs. 50,000/- are taxable under the Income Tax Act, 1961 at the hands of the receiver. With effect from 01/10/2009 gifts in kind i.e. immovable or other property, the value of which exceed Rs. 50,000/- have been brought under the ambit of taxation to be taxable at the hands of the receiver.

Kindly note that certain exemptions from taxability are provided in chapter 8 of the Income Tax Act.

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