Gift Tax
This query is : Resolved
09 August 2010
Hi,
I was working on the Gift Tax where got a little query...
As I read & Understand the primary Gift Tax has been removed and reintroduced as to be taxed in the hands of the receiver.. except gift irrispective of amount given to the family members in linear or decending relationship...
Now the confusion comes here... as it is said that the
1. A person can take gift from the relatives without any limit, where there would be no Income Tax u/s 56(2)(vi) of the Income Tax Act, 1961. 2. But one should avoid giving gift to spouse or son's wife because in that case clubbing provisions under section 64 will be attracted i.e. income from the gifted amount will be added in the income of donor....
Can someone please explain... and incase the gift is given what will the effect of the same...
i.e. if Mother in law gifts to daughter in law then will the amout be added back in the mother in law?? or Husband??
I was working on the Gift Tax where got a little query...
As I read & Understand the primary Gift Tax has been removed and reintroduced as to be taxed in the hands of the receiver.. except gift irrispective of amount given to the family members in linear or decending relationship...
Now the confusion comes here... as it is said that the
1. A person can take gift from the relatives without any limit, where there would be no Income Tax u/s 56(2)(vi) of the Income Tax Act, 1961. 2. But one should avoid giving gift to spouse or son's wife because in that case clubbing provisions under section 64 will be attracted i.e. income from the gifted amount will be added in the income of donor....
Can someone please explain... and incase the gift is given what will the effect of the same...
i.e. if Mother in law gifts to daughter in law then will the amout be added back in the mother in law?? or Husband??
09 August 2010
https://www.caclubindia.com/share_files/synopsis-of-taxability-of-gift-27904.asp
Please check above file for details.
Please check above file for details.
09 August 2010
Thnx for the quick response... I have read the article but there still remains a grey area.. i.e. can my Mother/Father Gift to my wife??? or can i Give Gift to my wife... There is a complication of clubbing Provision U/s 64.. which I need to get clarified...
09 August 2010
https://www.caclubindia.com/forum/files/6_taxability_20of_20gift_20_20article_5b1_5d.pdf
Please check above link for clarification on that point.
Please check above link for clarification on that point.
09 August 2010
Thnx Sanjay the Article was v. useful...
As for the Clubbing Provision..
It states and puts stress on the INCOME from Asset Transfered... Now what if it is of Non Income value. I.e say Jewellery used in routine life transferd from My mother / Father to my Wife on occasions of Marriage (before 2009) then what??
As for the Clubbing Provision..
It states and puts stress on the INCOME from Asset Transfered... Now what if it is of Non Income value. I.e say Jewellery used in routine life transferd from My mother / Father to my Wife on occasions of Marriage (before 2009) then what??
09 August 2010
Exempt from Tax and clubbing provisions will not apply.
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