Gift at the time of marriage

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2014 Hello CCI Experts,

I have received Gold approx 600 gms at the time of marriage from relatives and friends in 2013 December.

I would like to know the tax implication of the same and my basic question should i show the same in my personal capital account prepared for Income tax purpose. How would i show? Like directly adding in to capital account or via separate entry?? Also Wealth tax implication?? Approx value is 18 Lacs. Plz send your opinion.

Also tell me the accounting part in Capital Account (Personal Capital Account)

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 March 2014 it is not taxable. specifically exempted under 56(2).

with regards to accounting, it would reflect as a direct credit to capital account.

wealth tax should apply.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2014 Dear Expert

How wealth tax would apply and any limit and any donor will have to pay tax because received at the time of marriage and any implication for friend have given gift

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 March 2014 gift tax is no more applicable...once asset becomes part of your asset pool, wealth tax should apply.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2014 Thanks a ton Expert

Plz can you elaborate with Wealth tax implication...any exemption limit is there

Even personal asset like gold comes under wealth tax scanner??

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2014 Even any criteria like 500 gms above gold comes under scrutiny or like that??

In nut shell, i want to save myself from Direct and Wealth Tax authority then how would i save myself??

Hope you would have understood my situation

Plz reply accordingly

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2014 There is no reply from the Expert

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 March 2014 overall exemption limit under wealth tax is Rs 30 lkhs. so you need to first compute your total assets including this gold to check whether wealth tax applies or not.

with regards to scrutiny, well AO may well ask the people who gave you this much gold about their sources of income.

In nut shell, you need to comply to laws in your tax returns. the people who gave you this gold should be the people who should worry if their sources are not clean.

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