Gift in kind from NRI

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This query is : Resolved

Rajesh Topiwala (Querist)

16 November 2008 One of my Indian Resident client received Gift from third party NRI of SBI Millenium Bond in April, 2005. In scrutiny of his file for A. Y. 2006 - 2007 can ITO treat the same as taxable u/s 56 ( 2 ) ( v ) without considering the same being the gift in kind ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

16 November 2008 In my opinion No.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

17 November 2008 Gift in kind is not taxable. ITO may not consider the same as income u/s 56(2)(V)as the same will be on wrong premises.

Rajesh Topiwala

Rajesh Topiwala (Querist)

22 November 2008 Income Tax officer has disallowed assessee 's claim and wants to make it taxable u/s 56(2) (v). Is there any special Notification for $ gift bond that is in kind received by Indian Resident ? Bond is SBI MILLENIUM BOND in $. Originally acquired by Non Resident then gifted to Indian Resident.Please anybody has clarification for the above issue ?

Rajesh Topiwala

Rajesh Topiwala (Querist)

02 June 2009 GIFT IN KIND IS NOT TAXABLE U/S 56. But ITO SAYS THE GIFT RECEIVED IN KIND IS CONVERTIBLE IN CASH ! OUR ARGUMENT IS THAT EVERYTHING IS CONVERTIBLE IN CASH. ANYHOW JUDGMENT COMES IN OUR FAVOUR BECAUSE Bond is SBI MILLENIUM BOND in $ i. e. FOREIGN CURRENCY SPECIAL

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