Effective 1/10/2009 if gifts in kind of aggregate value of Rs.50000 and above have to be included in income from other sources. The kind is specified as property and the word property seems to be defined as:-
(d) property means
(i) immovable property being land or building or both;
(ii) shares and securities;
(iii) jewellery;
(iv) archaeological collections;
(v) drawings;
(vi) paintings;
(vii) sculptures; or
(viii) any work of art;
Now my doubts:-
Does property also include cars / two wheelers and if they are used for more than a year what would they be valued at?
The definition includes paintings and works of art etc. My friend has the hobby of painting and crafts and he gifts them to friends on occassions. he does not sell such paintings and he is totally unknown in the arts market . Do we have to get such gifts valued from anyone in particular. Finally it may be just the cost of the canvas or the clay to mould and paint.
In case we buy any items from a shop (say TV and fridge etc.) at a price below fair market value (take the basis as MRP) do we have to include the discounted price as gift in case aggregate value of such discounts exceed Rs.50000.
The problem is the definition of property is not included exactly where the rules are inserted and is it applicable to this rule.
CAclubindia
