Gift
This query is : Resolved
07 May 2010
One of my client has received gift from his brother's son. What are the tax implications of above transaction.
Thanks
Girish Sharma
Thanks
Girish Sharma
07 May 2010
The same will be taxable as not specifically exempt u/s 56(2)
07 May 2010
AGREE WITH ADITYA JI.
Realative for the purpose of this section is (i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual
(vii) spouse of the person referred to in clauses (ii) to (vi);]
Hence it is taxable in the hands of receiver in your case.
Realative for the purpose of this section is (i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual
(vii) spouse of the person referred to in clauses (ii) to (vi);]
Hence it is taxable in the hands of receiver in your case.
08 May 2010
According to the new proposal of the Union Budget 2009-10, any property received from a non-relative where the value is in excess of Rs 50,000 in a particular year will be considered as income in the hands of the recipient.
Earlier, gifts in the form of cash from non-relatives were exempted up to a limit of Rs 50,000 a year (if sum exceeds Rs
50,000, then entire amount is eligible for being taxed).
While this limit remains unchanged, the key change proposed is aimed at bringing in non-cash gifts into the tax ambit.
Earlier, gifts in non-cash form (like shares and securities, jewellery, archeological collections, paintings and gold), even if they were in excess of Rs 50,000, were exempt from any tax in the hands of the recipient
AND BROTHER'S SON IS NOT COVERED IN THE RELATIVE.
HENCE AMOUNT EXCEES OF RS. 50000 WILL BE TAXABLE IN HAND OF RECIEVER.
Earlier, gifts in the form of cash from non-relatives were exempted up to a limit of Rs 50,000 a year (if sum exceeds Rs
50,000, then entire amount is eligible for being taxed).
While this limit remains unchanged, the key change proposed is aimed at bringing in non-cash gifts into the tax ambit.
Earlier, gifts in non-cash form (like shares and securities, jewellery, archeological collections, paintings and gold), even if they were in excess of Rs 50,000, were exempt from any tax in the hands of the recipient
AND BROTHER'S SON IS NOT COVERED IN THE RELATIVE.
HENCE AMOUNT EXCEES OF RS. 50000 WILL BE TAXABLE IN HAND OF RECIEVER.
08 May 2010
THANKS. BANSAL JI I FORGOT TO MENTION RS.50000/- PROVISION.
THANKS FOR CORRECTING.
THANKS FOR CORRECTING.
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