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Gift

sneha (article) (62 Points)

17 September 2011

Dear Frnds,

If Father in law(sasur) gives gift to daughter in law (bahu) in form of Jwellery rs 65400/- will it be taxable than in whose hand.and what will be done in respective retun viz. sasur & bahu.

another part is if bahu wants show this jwellery in her fixed assets than at what cost she should show the jwellery as asset in her books.

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10 Replies

Sunshine (Helping All) (10575 Points)
Replied 17 September 2011

Gift to relative is not taxable u/s 56(2)...So there wont be any tax liabilities..But if the jewellery is invested and yields certain income, it would be clubbed with the original owner's income....

Cost of acquistion fr the daughter in law would be NIl...

2 Like

(Guest)

agree with sunshine except one thing

COA of jewellery in the hands of daughter in law shall be cost to the previous owner. S 49(1).

https://taxbykk.blogspot.com/

3 Like

Sunshine (Helping All) (10575 Points)
Replied 17 September 2011

my mistake...Thank u sir....

1 Like

CA Hemang Shah (PRACTICE) (658 Points)
Replied 18 September 2011

As per wealth tax it is sasur assets. As per income tax if jwellery invested and earn such income than such income will be taxed to sasur and if bahu wants to show jwellery in her balance sheet than he can disclose at cost of previous owner. But bahu cant show jwellery under wealth tax. This is my personal view. Lets dicuss.....

Mayank (Sr.Accountant) (152 Points)
Replied 18 September 2011

Gift to relative is not taxable u/s 56(2)...So there wont be any tax liabilities..But if the jewellery is invested and yields certain income, it would be clubbed with the original owner's income....

Cost of acquistion fr the daughter in law would be cost to the previous owner