We purchased a vehicle., according the scheme manufacturer had at the time of purchase, our purchage won a gift worth 20,000/- product., later we were informed gift product would be compensated by Cash (through cheque payment) and we were also suggested that this CASH Gift attracts TAX as per Income Tax Norm's, We were agreed to pay appropriate Tax.
Oflate., we were shocked to know that concerned dept deducted about 30% tax on 20,0000/- and got issued a cheque worth 14,000/-. We denied to accept the Cheque and informed 6000/- TAX on 20000/- is too much where by if company would have chosen to gift us product as informed earlier it would only attract about 3000/- provided if mercantile bills about 15% Sales TAX on goods sold (in real time % of tax on purchase of product might be less than 15%)
Informed the concerned that I cant accept the cheque unless and until we are explained in detail how Cash Gift of Rs.20,000/- attract's 30% TAX. Read numerous articles, read Income Tax Rules from start to finish and learnt that any GIFT (cash or goods) worth or below 50,000/- INR doesn't attract any tax and also learn that under HUF amounts exceeding 50,000/- INR dont attract tax.
we got a reply from the concerned (Please find the enclosed attachment) suggesting that "There is a 30% tax deduction on amounts given in compensation on product" .
Please help me understand actual TAXABLE Percentage on Gift Amount of Rs.20,000/-
Awaiting your needful assistance.,
Attached File : 1196846 1259544 gmail 30 deduction on amount.pdf downloaded: 124 times
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