Income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2015 If an employer gifts shares or other securities to his employee free of cost or at concessional price, what shall be its tax treatment in the hands of the employee?

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2015 Kindly help.

CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Querist)
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24 January 2015 U/s 56(vii)(c) where an individual receives from any persons any property, other than immovable property,? (i) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property; (ii) 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 : Property includes shares and securities also. Hence taxed under income from other sources.

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CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Querist)
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24 January 2015 It is also to be noted in what occation it is. Please read relevant section.

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2015 wont it be taxable as a perquisite u/s 17 as the employer employee relationship exists?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 January 2015 Provisions of section 56(2) related to gift will not be applicable to employee if such gifts are received from the employer.

Please refer Rule 3(7)(iv). Taxable as perquisite in the hands of employee.
(Upto Rs 5000/- is exempted)

Check out the said Rule from link given below:

http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Rule&cname=CMSID&cval=103120000000007059&k=&IsDlg=0

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2015 Sir, taxable as gift under rule 3(7)(iv) or as specified security under rule 3(8)(i) ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 February 2015 Will be Taxable under rule 3(7)(iv) as it is a Gift.

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