Gifts Received On Ocaasion of marriage

Originally posted by : neeta bhanushali

hiiiiiiiii

Under ITA any gifts received on occasion of marriage is exampt from tax but if it is received as dowry or from reletives from wifvs side what is the taxablity status?

- gifts received on marrige is exempt does not means that the gift tendering person has got the power to use black money for gift purpose .

if gift is of GOLD

- small items can be considered as gift from misc persons but if the god ornaments are of remarkable value ( i.e more than 5000/- in value for each item) then ITO may ask for the person who have tendered the gift with their taxable status, and return which has reflected the gift shown.

it"s of immovable property like FLAT?

- Flat can be gifted from own tax paid income, and it does not bar the relatives to ofer a flat as gift, but if the gift is tendered from non relatives ( obviously the market value is more than 50000) then taxable in hands of receipent.

or it"s CAR?

- same as flat.

AND INCASE OF SEC 132 &SEC133 Ie serch &seizare will it effect to any person ie to giver or to receiver because in case of gold there is nothing written evidence or registration cetificat .

PLEASE GET ME CLEAR.(considearing Amendment of Sec 56 as on 1.10.2009)

Here the departmental view is that in marrige party / celebration , there are hundreds of guests and almost everybody offers something in cash or kind to the new couple, so department exempts such small gifts from incometax, which is also some cash / ornaments and other things from either side of couple, gifted to couple.

but when the image comes to transfer of flats/ farm houses / bunglaws/ cars / heavy jewellary then department has to seek that the money paid on such such gifts are tax paid or not 1st, then the liner assessment in term of relative with bride or groom, if both are found in order then such gifts are exempted, otherwise such gifts are taxable in hands of the receipent.

a 3rd party guest can not givt the flat / car / heavy jwellary to couple, but a family member does, and if the gift is provided with tax paid money, then its not a matter of worry, but if they have used their money on which tax is not paid ...........then the matter would go litigated, who will pay the tax..............