sneha (article) (62 Points)
17 September 2011Dear Frnds,
If Father in law(sasur) gives gift to daughter in law (bahu) in form of Jwellery rs 65400/- will it be taxable than in whose hand.and what will be done in respective retun viz. sasur & bahu.
another part is if bahu wants show this jwellery in her fixed assets than at what cost she should show the jwellery as asset in her books.
Sunshine
(Helping All)
(10575 Points)
Replied 17 September 2011
Gift to relative is not taxable u/s 56(2)...So there wont be any tax liabilities..But if the jewellery is invested and yields certain income, it would be clubbed with the original owner's income....
Cost of acquistion fr the daughter in law would be NIl...
agree with sunshine except one thing
COA of jewellery in the hands of daughter in law shall be cost to the previous owner. S 49(1).
CA Hemang Shah
(PRACTICE)
(658 Points)
Replied 18 September 2011
Mayank
(Sr.Accountant)
(152 Points)
Replied 18 September 2011
Gift to relative is not taxable u/s 56(2)...So there wont be any tax liabilities..But if the jewellery is invested and yields certain income, it would be clubbed with the original owner's income....
Cost of acquistion fr the daughter in law would be cost to the previous owner
D VARA PRASADA RAO
(Student (Articles Completed))
(173 Points)
Replied 18 September 2011
Agreewith Mayank
CA BISHAN AGARWAL
(Profession)
(93 Points)
Replied 18 September 2011
Gift to relative is not taxable.
Cost to prevoius owner is the cost in books of Donee.
sneha
(article)
(62 Points)
Replied 19 September 2011
will this jwellery will come under exempted income of daughter in law
THANKS ALL
CA BISHAN AGARWAL
(Profession)
(93 Points)
Replied 20 September 2011
It will be shown under assets and added with capital.
CA. Manish Chandarana
(Practising CA)
(100 Points)
Replied 08 October 2011
Gift From Relative is not Taxable at all but prepare the gift deed n get it registered.
CAclubindia
