05 September 2011
One of my friend is doctor by profession. he has constructed new surgical hospital. I want to gift him certain medical equipements worth Rs. 3 Lacks.
My question is that my gift can be treated as income of my friend? if so how much tax he has to pay?
06 September 2011
Yes, Gift from Friend made taxable Though Its Not in CaSH. in a year in Total Upto 50000/- is Exempt Means in UR Case it is Txable to UR Friend.
06 September 2011
Yes it is taxable to ur friend. If the aggregate gift received exceeds worth Rs.50000(cash or in kind) to a person the entire gift value is taxable under the head income from other sources i.e Rs.3 lacs in ur case. The exemption is not for gift the act fixes slab to consider gift is as an income or not i.e upto Rs.50000 but not exempted. In simple in ur case entire Rs.3 lacs will be taxed not Rs.2.50 lacs. OM SAI SRI SAI JAI JAI SAI
06 September 2011
Many thanks for the quick response and knowledge sharing. In the same case suppose I have kept these medical equipemrnts at the my freiends hospital for the use of needy people. My friends has not taken these machinery in his books of accounts as the owner of the machinery is me. In this cirumtances is these machinery be treated as gift? please explain
06 September 2011
Gift is after all gift whether it is in cash or in kind. Instead of that you ask your doctor friend to book the order for the instruments and if you have a company dealing in equipment then show as sales to the doctor keep him debtor and after 3 years write it off as bad debts (this requires proper planning)
CAclubindia
