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gift n donation

Vaishali Bopardikar (CA final passed) (109 Points)

01 January 2010

plz anyone tell me the difference between gift and donation from income tax point of view..

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7 Replies

shailendra (C.A. FINAL) (189 Points)
Replied 01 January 2010

Dear Vaishali,

Gift is regulated by sec 56 of income tax Act, Donations are allowed u/s 80 G of the Act.

Actually gift is exempt from tax if certain conditions are fufilled, but Donations are always disallowed under income tax act unless the Donee is registered with department under section 80G.

Please go through the above sections to get into the detail.

If you want to clarify something even more then it would be better if u ask it by quoting an numeric example.

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Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 01 January 2010

would like to add to the shailendra that the registration u/s 12A(Charity Commissioner) is also required for the Purpose of claiming donation as exempt.

thanks

sunil

SUNIL SINGH (ACCOUNTANTS AND INCOMETAX WORKS) (142 Points)
Replied 01 January 2010

GIFT IS NOT TAXABLE UNDER BLOOD RELATIVE LIST FOR INCOME TAX ACT 1961 , OTHER WISE GIFT TAXABLE MORE THAN 50000/- & DONATION IS ALLOWED AND DISALLOWED BOTH BUT CONDITION APPLY I.E. DONATION U/S 80 G THROUGH REGISTERED CHARITABLE TRUST FOR INCOME TAX DEPT. REBATE 100/% AND 50% AND DISALLOWED DONATION NOT REGISTERED TRUST.

Vaishali Bopardikar (CA final passed) (109 Points)
Replied 01 January 2010

what is the tax treatment for donation received by the charitable trust???

shailendra (C.A. FINAL) (189 Points)
Replied 01 January 2010

Treatment of Donation received by the charitable trust is regulated by sec 11 of income tax act. Donation is included in the income of trust if it is not for a specific purpose. and other type of deductions are also available u/s 11 and 12 for which you have to refer to these sections.