Query regarding section 56(2)(vii)??????

hello friends, i am a little bit confused on the following point please help. read carefully.

as we know if a person receive sum of money  as gift exceeding Rs.50000 in a financial year  then the whole sum of money so received will be taxable. for example:: receiving 25000 and 26000 from two friends on birthday. the whole 51000 will be taxable.

now suppose both the above friends give their shares worth Rs. 25000 and Rs.26000 on birthday. whether the sum Rs. 51000 in whole be taxable or both gifts of shares would be exempt as market value of neither of them exceeds Rs. 50000 individually????????

Replies (5)

As per Sec 56(2)(vii) in case of movable property we have to consider the aggregate value and if it exceeds Rs. 50000 the whole of the gift would be taxable.Therefore in your case as the aggregate value of gift is 51000 ,both the gifts are taxable.Individual value cannot be considered.

Rs 51,000 shall be taxable....by virtue of section 56(2)(vii)(c)---vch is a separate category of gifts received in kind other dan immovable property by individual or HUF..... 

Agree with above answers

thank u all for helping me out . thanks again

Yes it is taxable :/

   Cash Gifts received from Non Relatives upto 30th September, 2009 are governed by Section 56(2)(vi).The sectional Limit upto which gifts are exempt is Rs. 50,000/-.

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