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?
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Gifting a motor vehicle
Replies (4)
Quick Summary
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
Its taxable no blood relation.
Purchase the car in your name & gift it to your friend, its tax free gift.
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.
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.
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