gifts

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krina

krina (Querist)
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06 February 2011 are gifts taxed ??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 Gifts of a sum above Rs. 50000/ received from non-relatives are taxable.

When a sum of money or property is received without consideration it is going to be taxable under certain conditions.

Gifts from relatives are exempt from tax.

For more details refer Section 56(2) (vii) and (viia)

krina

krina (Querist)
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06 February 2011 thanks sir ,

as u said recived from nonrelatives are tax but then what about the gifts receied from relatives as people wil gift high valued items inorder to avoid tax ??

so waht about that ...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 February 2011 Gifts received from relatives is not taxable.

krina

krina (Querist)
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07 February 2011 so wont there be tax evasion of tax ??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 February 2011 It's not evasion of Tax.
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For Example your father gifts you Rs. 1.00lac.

Q. From which source gift is being given.
Ans. A. It is out of his income which has already been taxed. or
B. It is out of income which is exempt from tax.
C. It is out of his disclosed (known to IT Dept.) Income.

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So whenever a gifr is being given there is no impact on tax payable by the donor.

And the receiver of the amount if is a major person is liable to pay tax on income arising on the gifted amount.
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SO it is not tax evasion at all.

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