GIFT IN KIND

Tax queries 3601 views 7 replies

IS GIFT IN KIND RECIEVED FROM ANY ONE IS TAXABLE OR NOT? (EXCEPT RECIEVED FROM EMPLOYER OTHER THAN ON MARRAIGE)

Replies (7)

EXHAUSTIVE TABLE FOR GIFT

(to be read for quick reference and exams revision )

 

Particulars

Gift in cash

Gift in kind

 

Received  from employer

 FULLY TAXABLE

EXEMPTED UP TO Rs. 5000

(value as on date of gift should be taken )

 

Received from  relative#

NOT TAXABLE

NOT TAXABLE

 

Received from Institution and local authority (whether gift is received from relative or outsiders).

NOT TAXABLE

NOT TAXABLE

 

Gift received on the occasion of the marriage of the individual

NOT TAXABLE

NOT TAXABLE

 

Any sum of money which is received under a will or by way of inheritance

NOT TAXABLE

NOT TAXABLE

 

Any sum of money which is received in contemplation of death of the payer

NOT TAXABLE

NOT TAXABLE

 

Cash gift received from person other then above

In excess of Rs. 50000 during PY – entire gift is taxable

·         Immovable property – taxable if stamp duty value Rs. Exceeds Rs. 50000.

·         Otherwise not taxable

 

·      Other property* - Taxable if FMV value Rs. Exceeds Rs. 50000

·      Otherwise not taxable

 

Less of Rs. 50000 – NOT TAXABLE

 

 

Gift received by a person from client in the course of business or profession [Perquisite from business or profession [Sec. 28(iv)] 

FULLY TAXABLE

 

 

# Relative here means—

               i.      spouse of the individual;

              ii.      brother or sister of the individual;

            iii.      brother or sister of the spouse of the individual;

            iv.      brother or sister of either of the parents of the individual;

              v.      any lineal ascendant or descendant of the individual;

            vi.      any lineal ascendant or descendant of the spouse of the individual;

           vii.      spouse of the person referred to in clauses (ii) to (vi).

 

 

*  other Property here means

 

(i)            Share and security

(ii)          Jewellery

(iii)         Drawing

(iv)        painting

(v)          Archaeological collection

(vi)        Sculptures

(vii)       Antique collection

(viii)     Any work of art

 

 

 

 

Thanks Manmohan for very crispy and precise details of taxability of gifts.Rgds.

Is there need to made gift deed also for the same or for specific case. Kindly reply

There is no necessity to make a gift deed, but people prefer such for documentation purposes.

Agreed with Manmohan

Gift received in kind is taxable if Fair maket value of gift is more than 50000. Prior to PY 2009-10 gift in kind is not taxable.

 

 

EXHAUSTIVE TABLE FOR GIFT

INCORPORATING AMENDMENTS MADE BY FINANCE ACT 2010

FOR MAY/JUNE 2011 EXAMS ONWARDS

(To be read for quick reference and exams revision )

 

Particulars

Gift in cash

Gift in kind

 

Received  from employer

 FULLY TAXABLE

EXEMPTED UP TO Rs. 5000

(value as on date of gift should be taken )

 

Received from  relative#

NOT TAXABLE

NOT TAXABLE

 

Received from Institution and local authority (whether gift is received from relative or outsiders).

NOT TAXABLE

NOT TAXABLE

 

Gift received on the occasion of the marriage of the individual

NOT TAXABLE

NOT TAXABLE

 

Any sum of money which is received under a will or by way of inheritance

NOT TAXABLE

NOT TAXABLE

 

Any sum of money which is received in contemplation of death of the payer

NOT TAXABLE

NOT TAXABLE

 

Cash gift received from person other then above

In excess of Rs. 50000 during PY – entire gift is taxable

 Less of Rs. 50000 – NOT TAXABLE

Immovable property

 

Without consideration

·         Taxable if stamp duty value Rs. Exceeds Rs. 50000.

·         Otherwise not taxable

Otherwise

 

 

 

Not taxable

Other property*

 

Without consideration

·         Taxable if FMV value Rs. Exceeds Rs. 50000

·         Otherwise not taxable

If consideration paid by assessee:

·         Taxable if FMV value Rs. Exceeds Rs. 50000

·            Otherwise not taxable

 

 

 

 

Gift received by a person from client in the course of business or profession [Perquisite from business or profession [Sec. 28(iv)] 

FULLY TAXABLE

 

               

 

# Relative here means—

               i.      spouse of the individual;

              ii.      brother or sister of the individual;

            iii.      brother or sister of the spouse of the individual;

            iv.      brother or sister of either of the parents of the individual;

              v.      any lineal ascendant or descendant of the individual;

            vi.      any lineal ascendant or descendant of the spouse of the individual;

           vii.      spouse of the person referred to in clauses (ii) to (vi).

 

 

*  other Property here means

 

(i)            Share and security

(ii)          Jewellery

(iii)         Drawing

(iv)        painting

(v)          Archaeological collection

(vi)        Sculptures

(vii)       Antique collection

(viii)     Any work of art


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