Taxation of Gift

If Assessee receives Gift in Kind is it taxable? What should be entry for accounting Purpose?

Replies (4)

No, it  is not taxable.

The entry will be like other gifts as per under:

Asset A/c    Dr.

     To Capital A/c

 

Yes...

Gift in kind is fully exempted hence not taxable

Hello darsh*t

Yes, Gift in kind received is fully exempted accordingly not taxable but,

if the gift received is in capital nature i.e capital asset then it will attract capital gain whether short or long as the case may be

With Best Regards,

Kiran Kumar V

Regardin the query,

Before making the decision, it has to be crystal clear that whether it is a gift or a prize. Gift in kind is totally exempt. But prize received out of any game show or competition is taxable.

 

As said by Mr. Kiran, if the gift is in nature of capital asset, i would like to add a point to the same that, the question of Long Term or Short Term Capital Gain shall arise at the time of selling such gift received in kind.

 

So the bottom line is that Gifts received in kind are fully exempt. However, if such gifts are of Capital Nature, it will attract Capital Gain at the time of sell or disposal of such gift.

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