Query regarding under section 56(2)(vii)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2013 DEAR EXPERTS,

on 25 march 2012,Rahul my friend gets a gift a MOTOR car from their father in law FIAR MARKET VALUE 400000 RS. .

WHAT WILL BE AMOUNT TAXABLE IN purview of section (56) (2) (vii)

NAMDEV

Guest

Guest (Expert)

04 January 2013 Father in law will be relative as per provision of IT Act. Gifts received from relatives is not taxable. Hence the tax liability will be nil.

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2013 SIR,

WHAT WILL BE AMOUNT TAXABLE IN purview of section (56) (2) (vii)

NAMDEV

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Guest

Guest (Expert)

04 January 2013 sec 52 (2)(vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,—

(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;

96[(b) any immovable property, without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;]

(c) 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 :

Provided that where the stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-section (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far as may be, apply in relation to the stamp duty value of such property for the purpose of sub-clause (b) as they apply for valuation of capital asset under those sections :

Provided further that this clause shall not apply to any sum of money or any property received—

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(c) under a will or by way of inheritance; or

(d) in contemplation of death of the payer or donor, as the case may be; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Explanation.—For the purposes of this clause,—

(a) "assessable" shall have the meaning assigned to it in the Explanation 2 to sub-section (2) of section 50C;

(b) "fair market value" of a property, other than an immovable property, means the value determined in accordance with the method as may be prescribed97;

(c) "jewellery" shall have the meaning assigned to it in the Explanation to sub-clause (ii) of clause (14) of section 2;

(d) "property" 98[means the following capital asset of the assessee, namely:—]

(i) immovable property being land or building or both;

(ii) shares and securities;

(iii) jewellery;

(iv) archaeological collections;

(v) drawings;

(vi) paintings;

(vii) sculptures; 99[***]

(viii) any work of art; 1[or]

1[(ix) bullion;]

1a[(e) "relative" means,—

(i) in case of an individual—

(A) spouse of the individual;

(B) brother or sister of the individual;

(C) brother or sister of the spouse of the individual;

(D) brother or sister of either of the parents of the individual;

(E) any lineal ascendant or descendant of the individual;

(F) any lineal ascendant or descendant of the spouse of the individual;

(G) spouse of the person referred to in items (B) to (F); and

(ii) in case of a Hindu undivided family, any member thereof;]

(f) "stamp duty value" means the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property;]
refer to the exclusion clause. Gift from relatives is not taxable.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2013 SIR thanks for Reply but my query still unsolved .....

WHAT WILL BE AMOUNT TAXABLE IN purview of section (56) (2) (vii)

NAMDEV