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Gifting a motor vehicle

Others 8296 views 4 replies

JerryRigged

Student

21 Points Posted on 24 January 2023

Hello Everyone,

I want to gift a friend of mine a car worth 16L. What would the tax implications be? Do I buy the car and then gift (transfer in their name)? Would I have to show purchase of car in my income tax filing?

Replies (4)

Quick Summary

Gifting a car worth 16L has mixed views. Generally, motor vehicles are not treated as taxable movable property under gift provisions, so recipient may not be taxed. However, there is no tax deduction for giver and no income reporting benefit. Professional advice is recommended for clarity.

Prashant Daga

194 Points Posted on 24 January 2023

It's taxable under your friends hand under other source head under section 56(2)(x)...and how to show in return wait for other reply

sabyasachi mukherjee

Profession Business

28207 Points Posted on 24 January 2023

Its taxable no blood relation.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211641 Points Posted on 24 January 2023

Purchase the car in your name & gift it to your friend, its tax free gift.

Abinash Panda

80 Points Posted on 25 January 2023

Listen, brother ,Car is not covered In the Definition of movable property.
In income tax.
If you give a gift.
To your friend a car It will be exempt for him In Income Tax Act.There is not any case of relative and non relative.As it is not a movable property. When your friend sells the car then also capital gain is not applicable on it unless it is used in his business.
Your tax implication is you have to pay nothing and also you cannot take deduction of that 16,00,000.For better advice you can Consult a CA or a financial expert.