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Query on gift received

CA.AZAD JAIN (CA) (201 Points)

17 May 2018

Whether gift received from relative covered in the definition of Income or not???

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 17 May 2018

Yes.

As per Sub-section(24) of section 2 of income tax...... "income" includes—

Following sub-clause (xiia) shall be inserted after sub-clause (xii) of clause (24) of section 2 by the Finance Act, 2018, w.e.f. 1-4-2019 :

(xiia) the fair market value of inventory referred to in clause (via) of section 28;

(xiii) any sum referred to in clause (v) of sub-section (2) of section 56;

(xiv) any sum referred to in clause (vi) of sub-section (2) of section 56;

(xv) any sum of money or value of property referred to in clause (vii) or clause (viia) of sub-section (2) of section 56;

(xvi) any consideration received for issue of shares as exceeds the fair market value of the shares referred to in clause (viib) of sub-section (2) of section 56;

(xvii) any sum of money referred to in clause (ix) of sub-section (2) of section 56;

[(xviia) any sum of money or value of property referred to in clause (x) of sub-section (2) of section 56;]

Following sub-clause (xviib) shall be inserted after sub-clause (xviia) of clause (24) of section 2 by the Finance Act, 2018, w.e.f. 1-4-2019 :

(xviib) any compensation or other payment referred to in clause (xi) of sub-section (2) of section 56.

Whereas provisions in section 56, specify its taxability, ie. exempt if received from specific 'relatives' as defined in the section.