As per income tax gift received from relatives is it tax free? if relative give assets like gold, share, land in will to relative income tax liability arise on receiver hand or not? please explain.
As per the Income Tax Act of 1961, no tax is levied on the inherited assets,(through will or otherwis whether movable or immovable, as such. However, the tax will be levied if the new owner decides to sell the property. In case of movable assets like mutual funds, gold, shares, etc., the new owner is not liable to pay any tax at time of inheritance, But he/she shall have to pay the tax when they decide to sell these movable assets.
As per section 56(2)(x) ,if any person receives any sum on or after 01-04-17 without any consideration, then it shall be chargeable under income from other sources head.But this clause shall not apply to any sum of money or property received from any relative or under will/inheritance...etc.
property includes:-immovable property being land/building/both , shares/securities,Jewellery etc...
since above mentioned gifts comes under property and received from relative or under will , Not liable to Income tax.
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