TAX query

no dear it is not taxable because it does not include in the definition of property in ref to sec.56(2))(vii)

Yes its fully taxable as per current provisions of AY 2010-11.

@ tarun rastugi,

YA dats wad I think...but den When I checked MAnoharan & singhania, both...on dis Q both of dem gave it as taxable..whereas if v read d defn, den defn of property doesnt include gift in kind except d categories given der.

dont know wad to do.. 

i think it shall not be taxable as per the provision but if some one think that this is a work of art then it is taxable.

“property” means—

       (i)  immovable property being land or building or both;

      (ii)  shares and securities;

     (iii)  jewellery;

     (iv)  archaeological collections;

      (v)  drawings;

     (vi)  paintings;

    (vii)  sculptures; or

   (viii)  any work of art;

@ Tarun and mansavi,

See that watch is worth Rs 60000/- in market. Definately that watch will have some precious or semi precious stones or may be some precious part . Since it might have those stones(precious or semi precious) , it will come under the ambit of jewellery as per explanation to Sec.2(14)(ii). It will come under the category of property.

Hence it will be taxable fully as per provisions of AY 2010-11. My answer is based upon that understanding as given above.

Kindly see the explanation 2(14)(ii)---

Explanation.—For the purposes of this sub-clause, “jewellery” includes—

        (a)   ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel;

        (b)   precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel;]

thanx ahmed for explanation and clearing my doubt

You are welcome Tarun and Thnx Mansavi for giving chance to explain my point...

yes it is taxable

Dont make fun of other members. you are a boy.

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You had created a profile with my name. It is clearly evident from the above given link of the forum in which you have written your name as lucky. Your profile was with the name of madhvi a few months ago. Do not create profile with my name again plz.