hello guys.....
can u tell me how gift is treated when it is received from relatives and friends.........
what is the exemption limit in each case..........and some other things........
thnks.........
wating 4 ur reply........
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treatment of gift received from friend and relatives ????
Replies (17)
hey anoop
as per section 56(2),in following cases gift is not treated as income:
1.Received from relatives.
2.Received on the occasion of marriage of the individual.
3.Received under will, inheritence.
4.Received from non relatives on other occasion exempt upto aggregate of Rs.50000/-
okie..
thanks buddy..........
Also add gifts received in anticipation of donor's death to Manish's list..
Pls find the relevant provision of the law from section 56 of the income tax act
on or after the 1st day of April, 2006 1a[but before the 1st day of October, 2009],(Applicable to gifts in cash, Cheque etc.
(vi) where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006 1a[but before the 1st day of October, 2009], the whole of the aggregate value of such sum:
Provided that this clause shall not apply to any sum of money received
(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer; or
(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or
Explanation.For the purposes of this clause, relative 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);]
Conclution : for Relatives no limit i.e. any amount of gift is not taxable & for any person other then relative a consolidated limit of 50000/- will be applied.
This limit of 50,000 is not for single person & is applicable to gifts received from all persons(other then relatives in toto).
on or after the 1st day of October, 2009,(for all types of gifts)
vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,
(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;
(b) any immovable property,
(i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;
(ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consi-deration;
(c) any property, other than immovable property,
(i) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property;
(ii) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration :
Sunil
Whether gifts in kind will also be taxable w.e.f.1-10-2009?
| Originally posted by :harry | ||
| " | Whether gifts in kind will also be taxable w.e.f.1-10-2009? | " |
yes, if the value of the same excceds the amount of 50,000/- from a person who do not fit into the definition of Relative.
sunil
whether gift above rs 50000 from relative will also be taxable after1/10/2009 ???????
So the inference is
All gifts whether in cash or kind is taxable if it exceeds Rs.50,000 received from anyperson including relative
Whether the term "brother or sister of the individual" referred to in the definition of relative for the purpose of section 56(2) includes cousin of an individual or only real brothers & sisters are covered here???
Mr. Simarpreet Singh
I think cousins are not covered...
@ anoop......I dont think that gift received from a relative will be taxable even after 1.10.09
My question:
WEF 1.10.09, as it is mentioned, that gifts received above Rs. 50000, whether in cash or kind will be taxable. Will both be considered separately or together. That is, if 30000 received in cash and 30000 received in kind, what will be the treatment.
Mr.Sourav...
Gift exceeding Rs.50000/- is taxable includes both cash and kind....
as per your eg. it is taxable....
W.e.f. 01.10.2009, the exemption of gift in cash upto an amount of Rs.50,000/- & further exemptions of gift of movable property & gift of immovable property each of Rs.50,000/- are available. Thus we have three exemption limits of Rs.50,000/- each i.e. total Rs.1,50,000/- per year.
Thus if Rs.30,000/- is received in cash & a gift in kind of Rs.30,000/- is received in kind, the whole amount is exempt...
well, the last two views are contradictory............somebody clarify!
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