31 December 2010
A Company wish to gift a car to a consultant apart from the agreed fee, as he helped them in acheiving financial closure of a project in quick time. whether TDS provisions are applicable in case of gift of car. if yes, which section/case law deals with this?
01 January 2011
Agreed with the expert above, TDS will not be applicable on gifts. It will be the duty of the consultant who received the gift to disclose this as income from business / profession u/s 28 in his return of income and pay the self assessment tax or advance tax as the case may be.
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