Income tax on gift in kind from non relative person

This query is : Resolved

niyazahmad (Querist)
Follow

05 July 2010 we have received a land from our friend in free of cost in the A.Y. 2007-08, pls tell me that this transaction is taxable under Income tax Act for that assessment year.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

05 July 2010 yes, any free gift otherthen those under certain exemption are taxabl;e.

IT iwll be taxable in your hand

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
Follow

05 July 2010 no it is not taxable at all gift in cash was taxable befor 1.10.2009 as per section 56 on or after ist oct 2009, gift in certain property is also taxable if it exceeds 50000 rs, u received gift in 2007-2008 hence it is not taxable no matter person is ur relative or not

Upgrade to CAclubindia Pro. Subscribe Now!

CA.Mini

CA.Mini (Expert)
Follow

05 July 2010 i think gift in kind received in AY 2007-08 was not taxable.u/s 47 gift is exempted from capital gain .Sec 56 applies if the gift received from non relative is above RS.50,000 in cash.and the immovable property is covered only on transactions on or before 1.10.2009.