Income tax

how can a company receive gifts being a artificial person?

Dear Sujith,

I don't know whether a company receive or give gifts.

But this is for sure that if the amount of gift exceeds Rs. 50000 than it will be taxable as the income of the company. The exemption of gift exceeding Rs. 50000 received from relative is available only to an Individual and HUF.

if suppose on any occation of its meeting or any aniversary it got any gift anything like Costly Painting;s suclpture, weather it is gift taxable

I think Company not received as gift.  how can taxable or not.  if any indivitual received execeed 50000 the it is taxable.

Thanks

IF A PRIVATE LIMITED COMPANY RECEIVES GIFT FROM ANOTHER PRIVATE LIMITED COMPANY EXCEEDING RS 50000 THEN ONLY IT IS TAXABLE OTHERWISE IT IS NOT TAXABLE 

Please attach any notification/circular/sections relating to receipt of  gift  by pvt ltd company and its taxability.

Gift received by the Company is Taxable.

Exemption is available only to Individuals & HUF's under certain conditions as per 2nd provisio to section 56(2)(vii).

 IF A PVT LTD CO RECEIVES GIFT OF SHARES FROM  ANY PERSON OF PVT LTD CO AND IF F.M.V EXCEEDS RS 50000 THEN ONLY  IT IS TAXABLE OTHERWISE IT IS NOT TAXABLE.HOWEVER THIS PROVISION DONOT APPLY TO PUBLIC LTD CO.THUS IF COMPANY RECEIVES MORE THEN RS 50000 IN CASH IT IS NOT TAXABLE .THIS PROVISION IS AS PER SEC 56(2)(V111a).thus if company receives cash it is not taxable

Originally posted by : CA BHUMIT SHAH
	IF A PVT LTD CO RECEIVES GIFT OF SHARES FROM  ANY PERSON OF PVT LTD CO AND IF F.M.V EXCEEDS RS 50000 THEN ONLY  IT IS TAXABLE OTHERWISE IT IS NOT TAXABLE.HOWEVER THIS PROVISION DONOT APPLY TO PUBLIC LTD CO.THUS IF COMPANY RECEIVES MORE THEN RS 50000 IN CASH IT IS NOT TAXABLE .THIS PROVISION IS AS PER SEC 56(2)(V111a).thus if company receives cash it is not taxable

any case law or notification about this please attach.....