Taxability of Gift from foreigh

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CA Afzal Ghaniwala

Chartered Accountant

76 Points Posted on 11 December 2010

In case the assessee, who received gift from foreign in the event of his son's marriage, liable to pay tax on that gift ?

Replies (12)

CA PARAS BAFNA

Practising CA

33428 Points Posted on 11 December 2010

Gifts Received at the occasion of marriage of assessee is not covered by Section 56(vii) and as such are not treated as taxbale under the head Income From Other Sources. However, the assessee may be required to prove the genuinness of the Gift by establishing the Identity of the Donor and his financial capacity. Gift may be received from out of India.

Manmohan ACA, CS

Chartered Accountant

14245 Points Posted on 11 December 2010

EXHAUSTIVE TABLE FOR GIFT

(to be read for quick reference and exams revision )

Particulars	Gift in cash	Gift in kind
Received from employer	FULLY TAXABLE	EXEMPTED UP TO Rs. 5000 (value as on date of gift should be taken )
Received from relative^#	NOT TAXABLE	NOT TAXABLE
Received from Institution and local authority (whether gift is received from relative or outsiders).	NOT TAXABLE	NOT TAXABLE
Gift received on the occasion of the marriage of the individual	NOT TAXABLE	NOT TAXABLE
Any sum of money which is received under a will or by way of inheritance	NOT TAXABLE	NOT TAXABLE
Any sum of money which is received in contemplation of death of the payer	NOT TAXABLE	NOT TAXABLE
Cash gift received from person other then above	In excess of Rs. 50000 during PY – entire gift is taxable	· Immovable property – taxable if stamp duty value Rs. Exceeds Rs. 50000. · Otherwise not taxable
	In excess of Rs. 50000 during PY – entire gift is taxable	· Other property* - Taxable if FMV value Rs. Exceeds Rs. 50000 · Otherwise not taxable
	Less of Rs. 50000 – NOT TAXABLE
Gift received by a person from client in the course of business or profession [Perquisite from business or profession [Sec. 28(iv)]	FULLY TAXABLE

# Relative here 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).

* other Property here means

(i) Share and security

(ii) Jewellery

(iii) Drawing

(iv) painting

(v) Archaeological collection

(vi) Sculptures

(vii) Antique collection

(viii) Any work of art

Gopal Sengar

CA STUDENT

531 Points Posted on 05 January 2011

nice

very useful

Manmohan ACA, CS

Chartered Accountant

14245 Points Posted on 05 January 2011

Originally posted by : gopal
	nice very useful

thanks for your generous comments

safal

Articleship

80 Points Posted on 06 January 2011

DUDE TY FOR UR EFFORT

Dhawal Mohnot

Practicing

449 Points Posted on 06 January 2011

Nice table. Very useful.

There has been a change WRT gift of immovable property with effect from 1.10.2009. The table does not consider that.

Manmohan ACA, CS

Chartered Accountant

14245 Points Posted on 06 January 2011

EXHAUSTIVE TABLE FOR GIFT

AY 2001-12

(To be read for quick reference and exams revision )

Particulars	Gift in cash	Gift in kind
Received from employer	FULLY TAXABLE	EXEMPTED UP TO Rs. 5000 (value as on date of gift should be taken )
Received from relative^#	NOT TAXABLE	NOT TAXABLE
Received from Institution and local authority (whether gift is received from relative or outsiders).	NOT TAXABLE	NOT TAXABLE
Gift received on the occasion of the marriage of the individual	NOT TAXABLE	NOT TAXABLE
Any sum of money which is received under a will or by way of inheritance	NOT TAXABLE	NOT TAXABLE
Any sum of money which is received in contemplation of death of the payer	NOT TAXABLE	NOT TAXABLE
Cash gift received from person other then above	In excess of Rs. 50000 during PY – entire gift is taxable Less of Rs. 50000 – NOT TAXABLE	Immovable property
		Without consideration · Taxable if stamp duty value Rs. Exceeds Rs. 50000. · Otherwise not taxable	Otherwise Not taxable
		Other property*
		Without consideration · Taxable if FMV value Rs. Exceeds Rs. 50000 · Otherwise not taxable		If consideration paid by assessee: · Taxable if FMV value Rs. Exceeds Rs. 50000 · Otherwise not taxable


Gift received by a person from client in the course of business or profession [Perquisite from business or profession [Sec. 28(iv)]	FULLY TAXABLE