Gift received in kind!!!
Querist : Anonymous
Thank you
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 (ii) to (vi).
As per Section 2(14) Gold will be considered as capital asset and it will be taxable under the head Capital Gain [Section 45(1)]. However, as per Section 47(2) it is not considered as transfer. So at this time it will not be taxable under Income Tax Act.
It will be taxable in the hands of son when he will sale the Gold
Please read the question carefully.
Father gifted gold(kind) to son.
He is asking about this transaction not later on. applicability of capital gain tax is on the hands of transferer.
But U/s 56(2)(vii) tax will be applicable in the hands of receipient.
However Since gift is not treated as a transfer u/s 47 it will not be taxable for the father to give gift to son and the son is receiving gold without any consideration. However gift is received from father and hence the same will not be taxaxble in the hands of the son under the head income from other sources as it is not taxable u/s 56(2)
In other words, there is no need to refer Section 56(2)
W. E. f. 01.06.2010 if u receive gold as gift other than a non relative is taxable under the head income from other sources. Before that receipt of gold was not taxable.
If u sell gold then it is taxable under the head capital gains. However since the above is gift it is not considered as a transfer and hence not taxable under the head capital gains.
Click here to login now
Similar Resolved Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- GST ON EXPORT COMMISSION
- RCM INVOICING FROM NOV-2024
- Tds on building rent monthly
- Disallowance of Section 43B(h) to sez units
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
