Gift

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ultragaurav (Querist)
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20 September 2011 Dear All,
1)A transfered the rs 150000 in to B's account as a gift,whether any tax liability comes to B in that fy
2) X gifts the 6 shops to y ,market value of which is (250000*6)=15,00,000 Rs in one fy,Is any tax liabitility comes to y .

CA Hardik Bunha

CA Hardik Bunha (Expert)
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21 September 2011 If they are not relative then
(1) YES
(2) YES

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 September 2011 1. Section 56(2)(vii) is applicable. Assuming A & B are not relatives, Rs. 1,50,000/- will be taxable in the hands of B.

2. Section 56(2)(vii) is applicable. Assuming X & Y are not relatives, Rs. 15,00,000/- will be taxable in the hands of Y.

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ultragaurav

ultragaurav (Querist)
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21 September 2011 Thanks For reply
If in the first case A is sister of B (HUF),than also there is any tax liability exists
and in the second case X is the father of y but in this case gift amount is so high than also there is no tax liability?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 September 2011 I am not able to understand the first query. Kindly explain in a little more detail.

As for the second query, even if X is father of Y, there will be no tax liablity on Y.

However, if Y is a minor then the income from the shops will be clubbed in hands of X.

ultragaurav

ultragaurav (Querist)
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21 September 2011 In first query A is Individual & B is karta of HUF.Ex:-
Suppose B is Ram in this case.
A gives the gift of rs 150000 to Ram (HUF).

ultragaurav

ultragaurav (Querist)
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22 September 2011 Dear All,
Please reply me soon

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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23 September 2011 Section 56(2)(vii) shall be applicable and Rs. 1,50,000/- will be taxable in the hands of the HUF.

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