gift tax

Mr.V.R.Mkunthan

You are refering Secton 56 of the Income-tax Act, 1961.  An amendment has been proposed in the Budget to this section.  According to the proposed amendment-

the receipt of the follwing items will be treated as income from other sources in the hands of the rceipient:

(i) any sum of money without consideration, the aggregate valu of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;

(ii) any immovable property-

(a) without consideration, the stamjp duty value of which exceeds fifty thousand rupees the stamp duty value of such property;

(a) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stampu duty value of such property exceeds such consideration;

(c) any property other tha immovable property,-

(i) without consideration, the aggregate fairmarket vlaue of which exceeds fifty thousan rupees, the whole of the aggregate fair market value of such property;

(ii) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fairm market value of such property as exceeds such consideration:

receipts from the following person and on the following occasions are exempted:

(a) relative or (b) receipts on the occasion of marriage of the invidual (c) under a will by way of inheritance (d) in cntemplation of death of the payer or donor, as the case may be (e)  from any local authority as defined in the EXplanaton to clause (20) of section 10 (f) from any fund or foundaton or university or other educational institution or hospital or other medical insitution or any trust or institution referred to in clause (23C) of section 10 (g) from any trust or institution registgered under section 12AA.

for the proposed amendment property has been defined as

(1) immovable property (2) shares and securities (3) jewellery (4) archaeological collections (4) drawings (5) paintings (6) drawings (7) sculptures (8) any work of art.

for further clarifications regarding stamp duty, the meaning of relative etc., please refer the proposed amendment in the Finance Bill.

Best Wishes

Sathikonda

no,for relatives..der is no change..

Ms.Bhumika

As you said there is no change as far as the definition of "relative" is concerned.  I have not given the full details of the amendments and I have not also dealt about certain "terms" such as "fair market value" etc., in my reply, hence I have asked Mr.Mukunthan to refer Clause 26 of Finance Bill.  Hope I have clarified your doubt about my answer.

Best Wishes

Sathikonda

no tax for relative

agreed with devanshi and bhumika

no tax for relative