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Property Gifted by my Neighbor

rahul tiwari (junior account assistant) (47 Points)

02 April 2019

Is property gifted by my neighbor taxable?

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prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 02 April 2019

As per section 56(2) (ii) of the income tax act 1961 gift received by an Individual (from other than relatives ) and value is more than 50000/- then such Income is taxed in the hands of receiver .

confirm with other also

Pankaj Agrawal (9 Points)
Replied 02 April 2019

56(2)(ii)if the property is more then 50000 in a single transaction then it is taxable in the hand of receiver

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rahul tiwari (junior account assistant) (47 Points)
Replied 02 April 2019

but property valuation in crores

rama krishnan (12234 Points)
Replied 03 April 2019

is it 56(2)(x) or 56(2)(II)?

Sarath Chandra (CA Final Student) (566 Points)
Replied 03 April 2019

As per section 56(2)(x), if any asset is received from a person (other than relative) is taxable in the hands of the assessee. If you receive gift from a non-relative on the occasion of marriage, then it is not taxable.

Gift received from your neighbour (non-relative) is taxable

If property is received for no consideration (i.e., free) and Stamp Duty Value (SDV) is more than Rs. 50,000, then entire SDV is taxable.

If property is received for low consideration or inadequate consideration:

(i) (SDV - Consideration paid) is more than Rs. 50,000 and

(ii) SDV is more than 105% of the consideration paid,

than the difference (i.e., SDV - Consideration paid) is taxable.