Can any one tell me the full treatment of gift recevied by relative under income tax act.
following are detail of gift:
gift - Equity shares
gift value - 438000 shares
Market price of share - 18 per share
Face value - 10
cost of acquition - 10 per share
Date of COA - july 1, 1996
Date of Sale - march 6, 2011
Kindly provide me full treatment of gift that what will taxable and what not?
Gift recd from blood relative is exempt from tax but at the time of selling this shares will be taxable in hand of recipient of gift. If gift giver has paid STT on this shares than it will exempt for gift recipient.
Thanx Pankaj,
Pankaj I have read the section 56(2) and it say that gift is exempt if gift recevied from relative but it also say that if stamp duty is more than 50000 then it will be income under the hand of recipient. please provide me some case law , if any, on my same problem.
CAclubindia
