Ruchi
(CA)
(1410 Points)
Replied 30 April 2016
The entire 2 lakhs will be taxable as Income from Other Sources.
CA Ayush Agarwal
(Practice)
(122 Points)
Replied 01 May 2016
rohit
(sa)
(59 Points)
Replied 01 May 2016
But Car does not fall under section 56(2)(vii)
How can that be chargeable under income from other sources..??
vishal
(paid assistant)
(21 Points)
Replied 02 May 2016
Car is not come under the definition of property as given in section 56(2)(vii). Car received as gift from distributor is not taxable as income from other sources.
abhi
(none)
(44 Points)
Replied 02 May 2016
Not taxable in any head... as car is not included in property defination... and distributor is not employer. ..
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 02 May 2016
Since this reward is for achieving sale target same will be chargeable u/s 28 There is also a judgement on this
S.28The following income shall be chargeable to income-tax under the head "Profits and gains of business or profession",—
(iv) the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession ;
Deepak Kumar
(Chartered Accoountant)
(270 Points)
Replied 02 May 2016
But if car gifted by employer to employee, how can we apply sec 28. Sec 28 applicable only when a relationship between 2 person is principal to principal, not employer employee. pls clear it
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 02 May 2016
Dear Deepak Kumar & others
please read the query clearly..Person( assessee )is a marketing manager in a Pharma Company and the distributor of the car gift a car to him estimating of Rs.2 lakh then what will be the taxability of Rs.2 lakh?
car is gifted by a distuributor of car not by employer i.e Pharma company..
so in this case assessee received this gift in his professional capaicity for achieving some sales targets.
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 02 May 2016
Dear Rohit,
Please clear me if i am wrong,
as per my view this is the case.. if there is any other transaction then please clearily mentioned it here.
CAclubindia
