GIFT PROVISION

Gift Tax has been abolished but under the income tax act it is taxable in the hand of receiver if it is not a relative. defination of relative for this section is specifically given under section 57 . this defination of relative is wider than the defination of relative given in the section 2 of Income Tax Act. Gift is Taxable under section 56(2)(V)/(vi) of Income Tax Act.

u can also received gift from person other than relative by crossed chequed maximum up to RS 50000

Hi Sachin!The provisions relating to gift are contained in section 56 (vi) of the IT Act. Any sum exceeding an aggregate of Rs.50,000/- in a year recd by an individual or HUF without consideration shall be chargeable to income tax, subject to some exceptions given under the said section like, gift from relative, gift on the occassion of marriage, gift under a will etc. Note that the term "relative" has been also defined under the said section.

Refer Sec 56(2)(V) of Act.

Mr.Sachin Sharma. Kindly give your e-mail ID.I will send relevant detailed files regarding this provision.Even we can find it in share files section.

Hello Mr. Sriram my id is sachin_ada @ yahoo.co.in

One More Querry ? Foreign Comapny invested in an Indian Compoany in the shape of share application money. now, Foreign comapny want its money back but Indian Company is not in a condition to give back the share application money to foreign company. foreign company now saying waive the share application money because its very low amount for foreign company. now the question is, the waived money become the income of indian company. how can Indian Company treat it, like under what head? does the indian company will treate it as gift, capital gain, income from other sources ? what actly or in which account it will come of foreign company ?

Mr.Sachin Sharma. I have sent files relating to taxability of gifts to your e-mail.Hoping that you will find it useful.

Arey sachin...1 query do jagah kyu type karta hai yaar...

My wife is a NRE FOR 17 years and want to gift from her NRE a/c (joint with me) as sum of  1400000/as gift as her love and support to her sister.\

Kindly advice tax burden for donor and donne both for year 07-08.

Thanks

B/Rgds

Sushil

Gift received by minor can be club in parents income or individual limit of Rs. 50000/- gift applicable to each minor