GIFT IN KIND

Abhishek ratan maharao (B.Com & CA FINAL) (116 Points)

17 September 2010

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

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7 Replies

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 17 September 2010

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

2 Like

Kamal Jain (FCA) (200 Points)
Replied 17 September 2010

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

Harpreet (* * * * * *) (1670 Points)
Replied 17 September 2010

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

Rajesh (Student) (113 Points)
Replied 18 September 2010

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

Santosh (Student ( Final Year - New )) (348 Points)
Replied 18 September 2010

Agreed with Manmohan

Dinesh Kumar Agarwal (Article clerk) (117 Points)
Replied 18 September 2010

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.

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 07 January 2011

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