gift tax..in the hands of the giver

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what is the tax treatment of gift in the hands of the person who gives such gift??

could you explain it under the below contexts...1.money 2.immovable property..

iam aware of sec 56 but how does it go in the hands of a person who is giving it??

also are we supposed to get the gift registered(sorry if its the wrong word to use)??

Replies (6)

1.) No Tax Implications on the person who gives Gift. (but don't assume that he will get any deduction for Gift from his Income)

 

2.) Only for Gift of Immovable property registration is necessary as per Indian Registration Act. for other money gift it may or may not be registered, but Gift Note is essential along with PAN.

 

Thanks Samir for your answer (and gesture also). 

dear kinnary

gift in the hand of giver is not taxable because it is taxable in the hands of receipent according to some situations.but he will not get any deduction for this.

regards

tarun rustagi

their is not any tax  impliments in the hands of the transfer.

it is taxable in the handof receipent and there is no deduction in the hand of giver.. but as per amendments in finance act 2009, receipent has to pay tax if the value of the property ( in case of no consideration is received ) or difference between the consideration and market value exceeds 50,000/- then it is taxable..

Capital of the person who gives the gift would reduce in the books.? For E.g. Mr. A is having Gold worth Rs. 10,00,000, he gives Gold Amounting to Rs. 5,00,00 to his sister on her marriage, so in the Balance Sheet of Mr. A, capital would get reduced to that extent..?

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