25 January 2021
Hi experts, Company received a laptop as gift from its director. Is it considered as fixed asset? Also specify the tax implication on the same for company as well as the director.
26 January 2021
The Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of KDA Enterprises Pvt Ltd.1 (the taxpayer) held that a gift received by a company is a capital receipt and cannot be charged to tax under the Income-tax Act, 1961 (the Act) since there is no specific provision for taxability of such receipts in the statute. The Tribunal observed that companies are competent to make and receive gifts, and natural love and affection are not a necessary requirement. Under the Act, only the income of the taxpayer is subject to tax and not each and every receipt of the taxpayer, where the other receipts are not in the nature of income
27 January 2021
But, As per Section 56(2)(x) the following incomes, shall be chargeable to income-tax under the head "Income from other sources",
where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017,— inter alia
(c) any property, other than immovable property,— (A) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property; (B) 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 :
According to the above provision, the term "Any person" includes company also. So, will the gift by director to the company is not attracted by this section?
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