Gift in kind from NRI

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Rajesh Topiwala (Querist)
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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)
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16 November 2008 In my opinion No.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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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)
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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)
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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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