Is property gifted by my neighbor taxable?
Is property gifted by my neighbor taxable?
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
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.
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