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gift..

Lucky Jain (student) (210 Points)

06 April 2010

CASH GIFT 4M AN UNRELATED PERSON IS TAXABLE AS PER SEC 56...

YET I HAV A CONFUSION..

GIFT 4M MOTHERS FRD OF RS 21000 IS TAXABLE OR NOT TAXABLE

QUERY 1.IT DOESNOT XCEEDS 50000 BUT ITS 4M UNRELATED PERSON N NOT ON D OCCASION OF MARRIAGE...TAXABLE OR NOT TAXABLE???

I HAV AHUJAS BOOK IT SAYS TAXABLE...BUT IT DOESNT XCEEDS 50000

2ND QUERY.I HAV MY COACHIN CLASSES BOOK IN FRONT OF ME ...N QUESTION IS OF CLUBBIN

CASH RECD BY MINOR CHILD RS 48000 FROM MOTHERS FRD

TIS BOOK SAYS NOT TAXABLE AMT DOESNT XCEEDS 50000...56(2)PLZ HELP ME OUT

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8 Replies

Amir (Learner) (4016 Points)
Replied 06 April 2010

Dear Ridhi,

Gifts received FROM ONE OR MORE PERSONS in excess of Rs. 50,000 are taxable, provided it should not be received from a relative or in a circumstances at listed in Sec 56

That is to say in case of Gifts received from relatives or in circumstances mentioned in Sec 56 ANY AMOUNT RECEIVED IS NOT AN INCOME.(EVEN IN EXCESS OF Rs. 50,000)

Now Coming to ur question if Rs. 21,000 is the only gift received then it is not taxable since aggregate value of such gifts has not exceeded the threshold limit of Rs. 50,000..

Further there could be a typing error in the book which u r referring & the word "Not" before Taxable is missing.

As gar as Gift received by Minor is concerned that answer is correct, since aggregate amount of gifts in a FY has not exceeded the threshold of Rs. 50,000.hence NOT TAXABLE.

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Lucky Jain (student) (210 Points)
Replied 06 April 2010

OKAY M SORTED OUT WID GIFT OF MINOR AGGREAGTE AMT DOESNT XCEED RS 50000

BUT IT CANT B A TYPIN ERROR COZ I EVN HAV IN SME QUESTION GIFT RECIVED 4M HUSBANDS FRD...RS 50000

SAME IS TAKEN AS TAXABLE BY D BOOK...HOWEVER AGGREGATE AMT DOESNT XCEEDS RS 50000 NOW WAT TO DO...M STILL CONFUSED

Lucky Jain (student) (210 Points)
Replied 06 April 2010

SO WAT IF I DEVELOP A CONCEPT TAT GIFT 4M AN UNREATED PERSON IS TAXABLE IF AGGREGATE VALUE XCEEDS

RS 50000 THN WHOLE AMT SHALL B TAXABLE... M I RIGHT NOW.

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 06 April 2010

Husband's Friends does not come under the purview of "Relative" as per Section 56. Hence the Gift shall be taxable only if it exceeds Rs. 50000.

regards,

ratan

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 06 April 2010

Gift from Unrelated persons shall be fully taxable in excess of Rs. 50000.

regards,

ratan

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Amir (Learner) (4016 Points)
Replied 06 April 2010

Dear Ridhi,

Yes u r rite once it exceedes the limit of Rs. 50,000 then entire sum is taxable & not only in excess of Rs. 50,000.(But shoud be from Non relative or from circumstances other then Sec 56)

Ayushraj (Professional) (125 Points)
Replied 06 April 2010

Dear Amir & Others,

If Gifts are received in excess of Rs, 50,000/- from unrelated persons:

(1) Will the complete amount of Gift (suppose Rs. 1,60,000/-) be treated as Income from other sources?

(2) What if the assesse has no other income then the Gift of Rs. 1,60,000/- in A.Y 2010-2011, Will he have to pay any tax?

(3) What if he has no other income and receives Gift of Rs. 2,60,000/- in A.Y 2010-2011 and he purchases NSC of Rs. 1,00,000?

(4) Is it Necessary to keep any documentary proof of said Gift or else what it can be treated by ITO?

Amir (Learner) (4016 Points)
Replied 06 April 2010

Dear Ayushraj,

1) Yes once it exceeds then entrire amount is taxable & not only in excess of Rs. 50,000

2) No special rate of tax is there for this gift & it will be taxable as per Slab..So where assesee has no other Income & Gifts received u/s 56 is less then the exemption limit then no tax is payable.

3) Deduction can be claimed out of this Gift - since it is an ordinary Income. So in this case again No tax will be payable.

4) Its better to keep it.