received gift from foreign
This query is : Resolved
13 February 2008
a person received gift from his foreign
friend in foreign currency are liable to income tax as a gift
friend in foreign currency are liable to income tax as a gift
13 February 2008
Yes it will be taxable. But you will also have to follow FEMA Act. As there is limit on Gift to Individual in Foreign Currency
13 February 2008
Gifts made out of NRE and FCNR accounts are free from gift tax in India. (Gift tax has been abolished for all types of gifts from the 1st October 1998.).
As per Section 56 of the Income Tax Act, there is no gift tax applicable for gifts between relatives.
Gift Tax Act, 1958 has been repealed with effect from 1st October, 1998 and as such, Gift Tax is not chargeable on any gifts made on or after that date.
With regard to gifts of foreign exchange or specified assets made by NRls to their relatives in India, it should be noted that
Gifts made by an NRI/PIO to his or her spouse, minor children or son's wife will involve clubbing of income and wealth in the hands of the donor-NRI/ PIO.
In the case of gifts to minor children the clubbing of income, as above, will cease upon such children attaining the age of 18 years.
All gifts received by residents from NRls/PlOs may be subject to the tax authorities requiring the recipient to provide evidence as regards the identity and financial capacity of the donor and genuineness of the gift.
The Income Tax Act has now provided that any sum of money exceeding Rs.25, 000 received without consideration (i.e., gift) by an individual from any person on or after 1st September, 2004, the whole of such sum will be chargeable to income-tax in the assessment of recipient (i.e., donee) under that head "Income from other sources" for and from assessment year 2005-06 and onwards
Gifts on occasion other than marriage, for example, birthday, marriage anniversary and other social occasions, religious ceremonies etc., would be taxable as income. Gifts received on the occasion of the marriage of the individual, irrespective of any limit, (but within reasonable limits) would not constitute income.
Under the Foreign Exchange Management Act, 1999 no approval from Reserve Bank of India (RBI) is necessary for the resident donee to hold gifted immovable property outside India provided the said property is gifted by a person resident outside India. General permission, subject to certain conditions, is granted by RBI for the resident donees to hold foreign moveable properties such as shares and securities gifted by NRI/PIO donors.
SOURCE:www.india.gov.in/overseas
R.V.RAO
As per Section 56 of the Income Tax Act, there is no gift tax applicable for gifts between relatives.
Gift Tax Act, 1958 has been repealed with effect from 1st October, 1998 and as such, Gift Tax is not chargeable on any gifts made on or after that date.
With regard to gifts of foreign exchange or specified assets made by NRls to their relatives in India, it should be noted that
Gifts made by an NRI/PIO to his or her spouse, minor children or son's wife will involve clubbing of income and wealth in the hands of the donor-NRI/ PIO.
In the case of gifts to minor children the clubbing of income, as above, will cease upon such children attaining the age of 18 years.
All gifts received by residents from NRls/PlOs may be subject to the tax authorities requiring the recipient to provide evidence as regards the identity and financial capacity of the donor and genuineness of the gift.
The Income Tax Act has now provided that any sum of money exceeding Rs.25, 000 received without consideration (i.e., gift) by an individual from any person on or after 1st September, 2004, the whole of such sum will be chargeable to income-tax in the assessment of recipient (i.e., donee) under that head "Income from other sources" for and from assessment year 2005-06 and onwards
Gifts on occasion other than marriage, for example, birthday, marriage anniversary and other social occasions, religious ceremonies etc., would be taxable as income. Gifts received on the occasion of the marriage of the individual, irrespective of any limit, (but within reasonable limits) would not constitute income.
Under the Foreign Exchange Management Act, 1999 no approval from Reserve Bank of India (RBI) is necessary for the resident donee to hold gifted immovable property outside India provided the said property is gifted by a person resident outside India. General permission, subject to certain conditions, is granted by RBI for the resident donees to hold foreign moveable properties such as shares and securities gifted by NRI/PIO donors.
SOURCE:www.india.gov.in/overseas
R.V.RAO
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