Is gift is a deductible expense

a hero has gifted a car to his director,whether it is allowed as deduction for hero
Replies (6)
Quick Summary
This discussion explores whether a car gifted to a director by an employee is a deductible expense. The consensus is that gifts are generally not deductible. While the giver may have already paid tax on the income used for the gift, the director typically won't be taxed on receiving the car, as it's considered a gift and cars aren't included in specific tax definitions for property income.

No gift is not a deductible expense
Prabhas and Nithin
If it is not a deductible expense then it is taxed in the hands of hero
and for director, it is an income from other sources and it will be taxed in the hands of director
then it will lead to double taxation
For director it is a gift and he is not liable to pay tax as hero has already paid tax on his income from which he has gave gift to director

Director is not liable to pay tax under the head income from other sources as definition of property u/s 56(2) does not include car.

Thank you @ Gagan Deep singh

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