Tax on gift received by friend residing abroad

In this regard gifted amount exempted only 50000/- and rest amount taxable.

I have to disagree with harendra..please note that whole of the amount is taxable. Once the gift amount exceeds Rs 50000, the whole of it becomes taxable. Please refer Section 56(2)(vii) " (vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,— (a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;"

Sir,

Of, it's concept also keep in my mind. Thanking you your valuable opinion.

 

hello shikha,

entire amount of Rs.78026/- is taxable. for section 56(2)(vii), residential status is irrelevant. the given section is applicable irrespective of whether the donor or the donee is a resident or non-resident. however, the section specifically applies only to an individual or HUF.....it doesn't applu to other assessees like company, firm etc....