Gifts under section 56(2)(vii) of the Income Tax Act, 1961
(For gifts received on or after 01.10.2009)
From 1.10.2009, new clause [Sec. 56(2)(vii)] introduced for charging of Gifts received
by individual/HUF. Earlier, only gifts received in the sum of money was chargeable
under Income Tax Act. However w.e.f. 01.10.2009 gift received in kind is also
chargeable subject to certain conditions.
The new provisions is described as under :
I. If any sum of money received without consideration, the aggregate of which
exceeds Rs.50,000, the whole of such sum will be chargeable.
II. If any immovable property received –
(a) without consideration, the stamp duty value of which exceeds Rs.50,000,
the stamp duty value of such property will be chargeable.
(b) For a consideration, which is less than stamp duty value of property by an
amount exceeding Rs.50,000, the stamp duty value of such property as
exceeds such consideration will be chargeable.
III. if any property other than immovable property received –
(a) without consideration, the aggregate fair market value (FMV) of which
exceeds Rs.50,000, the whole of aggregate FMV of such property will be
chargeable.
(b) For a consideration, which is less than the aggregate FMV by an amount
exceeding Rs.50,000, the aggregate FMV as exceeds such consideration
will be chargeable.
However any such gifts received from relatives shall not be treated as income.
For the purpose of this, ‘relative’ means : ‐
(a) spouse of the Individual;
(b) brother or sister of the individual;
(c) brother or sister of the spouse of the individual;
(d) brother or sister of the either of the parents of the individual;
(e) any lineal ascendant or descendant of the individual;
(f) any lineal ascendant or descendant of the spouse of the individual;
(g) spouse of the person referred to in clause (a) to (f).
In this above Article What do you meant by
1. any lineal ascendant or descendant of the individual (upto which generations..???)
2. any lineal ascendant or descendant of the spouse of the individual (upto which generations..???)
3. spouse of the person referred to in clause (a) to (f).(some one please expalin this point to me.??)
Thank in Advance.
CAclubindia
