13 August 2014
is car recievd as a gift from other than relative is taxable or not if fair value of car is 1000000 and as it also not covered under specified property
13 August 2014
while the answer will remain same that it is taxed as income from other source, it will be taxed as gift of movable property (not immovable)
the taxing section shall be 56(2)(vii)(c) instead of 56(2)(vii)(b)
13 August 2014
Read Below Press Note Taxability of gift-in-kind
February 1, 2010
PRESS NOTES/RELEASES The Income-tax Act, 1961 (the Act) has been amended with effect from 1st October, 2009, to provide that any gift-in-kind, being an immovable property or any other property, the value of which exceeds Rs. 50,000 (rupees fifty thousand), will become taxable in the hands of the done, of being an individual or a Hindu undivided family (HUF), as income from other sources under clause (vii) of sub-section (2) of section 56 of the Act. Therefore, any such person who receives a gift of any such property on or after 1st October, 2009, must pay the income-tax due on the value of the gift and disclose the taxable value of such property in the return of income for the assessment year 2010-11 and subsequent years. The following types of gifts will, however, not be subject to tax, i.e., gifts (a) from a person who is a relative ; (b) on the occasion of marriage of the individual; (c) under a will or by way of inheritance; (d) in contemplation of death of the donor; (e) from any local authority as defined in the Explanation to section 10(20) of the Act; (f) from any fund or trust established the under section 10(23C) of the Act; (g) from any trust or institution registered under section 12AA of the Act. Relative is defined in the Act as (i) spouse ; (ii) brother or sister (iii) brother or sister of the spouse ; (iv) brother or sister of either of the parents; (v) any lineal ascendant or descendant; and (vi) spouse of any of the relative at clauses (ii) to (v) of the individual. Gifts received froth these relatives will not be subject to tax. Earlier cash gifts exceeding Rs. 25,000 were subject to tax with effect from 1st April, 2004. Later the Act was amended with effect from 1st April 2006, to tax all cash gifts having aggregate value exceeding Rs. 50,000. Cash gifts also enjoy exemptions as is available for gifts-in-kind. [No. 402/92/2006-MC (21 of 2009)] [Source : CBDT, Ministry of Finance, New Delhi, dated 30-9-2009
13 August 2014
yes read it. Now what? I request you to refer section 56(2)(vii)(c). what it says is that where gift is of value not exceeding Rs 50000, there is no tax. But once the the value exceeds Rs 50000, the whole of the amount/value is taxable.
13 August 2014
the press note you are referring to, also says the same thing, gift exceeding value of Rs 50000 are taxable. thats it.
The relevant section says:
"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.....;
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