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Gift rule as per income tax

Aakash Jha (Others) (50 Points)

04 August 2013

Hello,

I would like to procedure of giving the gift, so that i and the receiver will be tax exempted. E.g i have transferred the money from my bank account to my brother , brother in-law and spouse account , can i show this is as gift ? if yes then under which head (like 80c, 80d..etc) ? and how much amount in a financial year i can be tax exempted ?

Please ,help me

Regards

Aakash Jha

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10 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 04 August 2013

Gift received from a relative is non-taxable. In your case, it is non-taxable. However, it is recommended to have a documentary proof of the gift received or else the IT dept may invoke section 68 and make an enquiry for the same.

Annu.R (CA,CS,B.Com) (2788 Points)
Replied 04 August 2013

If the gift ,in the shape of land or plot, than gift deed is must on stamp paper and that should be registered.............

Janani Subramanian (Employed) (151 Points)
Replied 04 August 2013

The Taxability of gifts is covered U/s 56 of The Income Tax Act. The gifts are catergorised into 2 i.e Movable Properties and Immovable properties.

In case of:-

cash:- if any person gifts in cash an amount exceeding 50,000/- during the previous year then it will be taxable. Only if it exceeds 50,000 .

In case of movable properties i.e shares securities, Jewellery Drawaings , Pantings,, Sculptures, Archaleogocial Collectiona and any other work of art. If the Fair mArket Value received without consideration during the previous year exceeds 50,000 then the whole of the agggregate FMV of movable properties will be chargeable to TAx.

In case of Immovable properties without consideration and the stamp suty value of which exceeds 50,000 then the stamp duty will be chargeable to tax.. But if the property is purchased for a considerartion which is lower than the stamp duty value then nothing will be taxable.

Any gift reveived from the following shall not be treated as gift for it to be taxable:-

1. Received from relative

2. Received on the ocassion of marriage

3. Received by way of wll or inheritance

4. From Local authority, fund, foundation,university other eduacational institutuin, hospital and trust U/s 10(23 C)

For relative see Sec 56.

2 Like

Aakash Jha (Others) (50 Points)
Replied 04 August 2013

Thanks to all guru,

I would like to know that if am giving gift to my relative then can i claim income tax examption on that amount ?

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 04 August 2013

Originally posted by : Aakash Jha
	Thanks to all guru, I would like to know that if am giving gift to my relative then can i claim income tax examption on that amount ?

Yes but gift deed must be registered.

Amith (CA final & CS Professional) (63 Points)
Replied 05 August 2013

you can't claim the Gift under chapter VI A as a deduction, it should be netted off as an exempt income under the head income from other source, which is given under section 56 (2) (vII) in income tax Act. there is a reference available regarding the relation to the person, amount of gift income etc.,