It can never be taxed under pgbp as it wasn't received on his professional capacity he was just an employee at that time and car received just to fulfill some targets so it is a simple gift received just like of a friend... bt any gift which is not covered in property defination can not be charged in ifos...

Agreed with Abhi as he is not running any business and he received any gift to fulfil any target, section 28 can not be apllied.  Now either gifted car will be taxable in salary as perquisites or income from other source  under sec 56(2)(vii).  It is not perquisites so it is not taxable in salary and car is not given in property definition us 56(2)(vii), so it is not taxable in income from  other sources. Therefore it is not taxable anywhere.

but he is getting the same in his professional capacity. 

and there is no employer employee relation so it is not covered under salary head.

not covered under property under section 56 so not chargiable to IOS

assessee received the for achieving targets which he achieved in his professional capacity. so it is chargiable under PGBP

Answer is income chargeable under the head PGBP..As no employer employee relationship..hence not chargeable under Salary..income from other sources not possible..and as per section 28 it is chargeable..

I still think that it is chargeable under Income from Other sources. Agreed it is not chargeable u/s 56(2)(vii). But it will be chargeable under the residual section . As it is received as a result for achieving some professional targets from someone other than his employer, it is not a gift but an incentive.

And not even as PGBP because the elements for recognizing it under this head are also missing. 

Dear Ruchi,

Assessee is  a marketing manager in a Pharma Company and received a car from distributor of the company, since there is no employer employee relationship  so the value of gift is not chargiable to Salary head.

car is not covered under section 56(2)(vii), provision of the same is not attracted in the hand of assessee. 

The following income shall be chargeable to income- tax under the head" Profits and gains of business or profession" interalia

(iv) the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession.

so as per my view same is taxable in PGBP

If the car is given for personal use then not taxable.  if for office use, then it is taxable. 

Originally posted by : rohit
	Suppose a person a marketing manager of 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?

why the car distributor will  gift a car from his own stock to a pharma company marketing manager? they have stock of car for sales purpose, not for gifting to any third unrelated person. 

however if he does so, then its value is exeeding 50000, hence taxable in hands of receiver