Query on Gift Tax

Others 2373 views 12 replies

Piyush

article

110 Points Joined December 2009

Dear Sir/Madam

1. Is there a cap on immoveable property gifts made to relatives?
If yes then at what rate gift tax is levied?

2. What is the definition of relative?
Does a sister or brother fall under the category of relative under gift tax?

Replies (12)

Naveen

Learner

116 Points Joined December 2009

Piyush..

Yes, As per section 53 (2) (vi) gifts in access of 50,000 (in cash) are taxable exept on some occassions and from relatives. Please go through section 53 (2) (vi) for details.

Gifts in kind are not taxable at all. However for tax implications you will need to see the rules relating to clubbing of income.

Yes, Brother and sister fall in the definition of Relative for the purposes of this section.

Thanks.

Amir

Learner

4016 Points Joined December 2009

Dear Piyush,

Just want to correct waht Naveen said that the Secis 56(2) and with the Finance Act 2009, Gifts in KIND has also been made taxable exceeding Rs. 50,000...

Provided further that this clause shall not apply to any sum of money or any property received—

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(d) in contemplation of death of the payer or donor, as the case may be; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Relative means:-

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);]

CA Reetika Agarwal

Chartered Accountant

43 Points Joined October 2009

Dear Peeyush,

Plz find the attached file.It will definitely solve your querry.

C.Balaji

Learner

1867 Points Joined October 2008

thanks to CA Reetika Agarwal......very useful for all......

VIKAS AGARWAL

MANAGER

44 Points Joined December 2009

i want to take gift of shares from my brother Rs 1,00,000.As he is my brother then no GIFT TAX issue ,shall I have to make a gift deed or not ???????.............

Sudha M

23 Points Joined September 2009

Is gift received/given from/to maternal uncle of the spouse of individual falls under the category "any lineal ascendant or descendant of the spouse of the individual"? kindly advise

Sudha M

23 Points Joined September 2009

Is gift received/given from/to maternal uncle of the spouse of individual falls under the category "any lineal ascendant or descendant of the spouse of the individual"? kindly advise

CA Ankit Gangal

Audit Manager

242 Points Joined January 2010

what is the coverage under lineal ascendent or discendent of the individual?

C.Balaji

Learner

1867 Points Joined October 2008

Dear Ankit....

What u exactly want????

Sudha M

23 Points Joined September 2009

Dear Balaji,

Thanks for the interest you are showing. I want the answer to the question

WHO ARE ALL COVERED UNDER THE CATEGORY any lineal ascendant or descendant of the spouse of the individual"? IS MATERNAL UNCLE OF THE SPOUSE OF THE INDIVIDUAL WILL BE TREATED AS A RELATIVE FOR THIS PURPOSE?

SUDHA.M

Amir

Learner

4016 Points Joined December 2009

Dear Sudha,

All it is not clear but I think,

Maternal Uncle of the spouse will NOT be covered under Lineal Ascendant or Descendant

https://www.hindu.com/biz/2005/10/10/stories/2005101000421700.htm

MONICA

29 Points Joined February 2010

AMIR...

CAN U PLZ TELL WEATHER GIFT OF A IMMOVABLE PROPERTY ABOVE 50000..EX A GEM OF 1,00,000 GIVEN AS GIFT TO NON-RELATIVE FOR 30,000 WILL 70000 BE TAXABLE OR 70000-50000 I.E 20000 B TAXABLE..??