Taxability Of Gift

Section 56(2)(vi) provides that any sum of money, the aggregate value of which exceeds Rs. 50000/-, is received without consideration (i.e. gift), by an individual or a HUF, in any previous year from any person or persons on or after 1-4-06, the whole of the aggregate value of such sum will be chargeble to income tax in the assesment of receipient

{SOURCE: IT ready Reckoner A.Y 2008-09, pg 170 }

 

Now my query is tht if i give a gift in excess of Rs 50000/- will the entire sum or only the sum exceeding 50K will be taxable.

 

How do u interprete the term such sum in the act

 

Thanx in advance. 

Replies (9)

Mr.Ankit Jain, When a person receives any sum of money exceeding Rs.50000/- from one or more person, as a single or cumulative amount, then the entire amount of money received will be taxed. Many people are under a notion that, if money received as gift exceeding Rs.50000/-, then the amount which exceeds Rs.50000/- shall only be taxable which is completely wrong.

Entire sum would be taxed in excess of Rs 50,000.

is this also applicable when i want to gift some eq. shares of costing Rs.100,000/- to one person with whom i have no relationship?

This limit is applicable when you are recieving gift from someone. In your case you are giving so it is not applicable in your case.

Originally posted by :DIPAK AGARWAL
" is this also applicable when i want to gift some eq. shares of costing Rs.100,000/- to one person with whom i have no relationship? "


 

no whether this will be taxable to the receipiant or fee?

any sum received in the previous year by way of gift from the relative (u/s56) in  cash which exceeds Rs.50,000 the entire amount of  the gift is taxable without any limit of Rs.50,000.gift in kind is not taxable

if you get any gift in cash exceeding Rs.50000 from a non relative, then invest such amount in 80C so that it will be an investment & and you could save tax also.

my query is dat if i get 3 gift in cash on different dates each amounting Rs.30,000 den also tax be payable or not..
If the person who made gift is in blood relation does gift in cash taxable!!!

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