I went through so many people to get a clear picture about the gift tax that is there. But in vain, What i have in mind is to get my son a car for his birthday, hes going to be 21. This is the picture, i stay currently in Dubai, have looked upon a car. Was thinking about giving him the car. The car value is close to 25 lacs here in Dubai. If i was to gift him that. Would that be a taxable gift!? If so how much is the gift tax? OR even gift it to him under my wife name? I checked the price for the same car in India the price or the tag for it was not even justifiable with my brain. If somebdy can help me out! M open to suggestions
19 November 2011
Gift tax provisions were brought under Income tax act.
It is better to give car in the name of your son( Gift tax will be nil) and also at the time of sale your son only be responsible for that income.
No question gift tax even you tranfer the same to your spouse , but clubbing provisions gets attracted at the time of sale i.e gain will be included in your hands.
19 November 2011
Since 1998, there is no Gift Tax per say in India. The gift is added to the income of the receiver and is taxed accordingly.
There is exemption for gifts received from certain people. The gifts that one receives from relatives on the occasion of marriage,birthdays the gifts receives from parents and grand parents, the gift received by a daughter-in-law from her parents-in-law, and gifts received by way of a will and inheritance are exempt.
So no tax will be attracted.
If you have little lack of security in this, then you can make a gift deed.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
20 November 2011
So just to make sure that is if i buy a car here in dubai and export to india he would occur any gift tax!
And would i have to bear the import tax chrges fr having the car registered under my sons name!? M referring to apart from the registration charges and insurance
20 November 2011
As i told above, no gift tax will be attracted, but obviously you have to bear the import duties apart from registration and insurance.