16 November 2008
One of my Indian Resident client received Gift from third party NRI of SBI Millenium Bond in April, 2005. In scrutiny of his file for A. Y. 2006 - 2007 can ITO treat the same as taxable u/s 56 ( 2 ) ( v ) without considering the same being the gift in kind ?
22 November 2008
Income Tax officer has disallowed assessee 's claim and wants to make it taxable u/s 56(2) (v). Is there any special Notification for $ gift bond that is in kind received by Indian Resident ? Bond is SBI MILLENIUM BOND in $. Originally acquired by Non Resident then gifted to Indian Resident.Please anybody has clarification for the above issue ?
02 June 2009
GIFT IN KIND IS NOT TAXABLE U/S 56. But ITO SAYS THE GIFT RECEIVED IN KIND IS CONVERTIBLE IN CASH ! OUR ARGUMENT IS THAT EVERYTHING IS CONVERTIBLE IN CASH. ANYHOW JUDGMENT COMES IN OUR FAVOUR BECAUSE Bond is SBI MILLENIUM BOND in $ i. e. FOREIGN CURRENCY SPECIAL
CAclubindia
