Sumiti Jain (FP) (1364 Points)
07 February 2011A person has received a sum of money from the sale of his shop, now he wants to make a gift to his daughter with that sale proceeds. This gift is made other than an occasion of her marriage.
What is the treatment in the hands of that person of such sale proceed? Whether he has to pay tax on the total amount recd. less cost or on the amount left from the deduction of amt. of gift.
Suguna
(VP)
(98 Points)
Replied 07 February 2011
the capital gain tax has to be paid on the difference between saleproceeds - indexed cost of acquisition.in the case of gift if it is paid to an outsider and the amt is greater than 50000/- then it is taxable @ 30%+3%. however since in this case the gift is to a daughter who is a relative ther would be no tax
Rohit Garodia
(CA Final B.Com 3rd Year)
(165 Points)
Replied 07 February 2011
There is no Deduction in Gift......
N gift is given 2 relatives then no occasion is required it can b given anytime..........
john
(LEARNER)
(549 Points)
Replied 10 February 2011
Is there any limit for CASH gift to relatives, cash gifts after Mar-10
CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 10 February 2011
John the learner,
There is no limit on cash gifts to the ralatives. No tax is leviable even gifts above Rs. 50000/ to relatives.
In case gift is made to other than relatives limit is 50000/. If the gift exceeds 50000/ entire amount is treated as income from other sources and taxed.
CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 10 February 2011
| Originally posted by : Suguna | ||
 |
In the case of gift if it is paid to an outsider and the amt is greater than 50000/- then it is taxable @ 30%+3%.
However since in this case the gift is to a daughter who is a relative, there would be no tax
The person can save LTCG tax by investing in Residential House or in Capital Gain Bonds. |
 |
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
