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GIFT PROVISION

Adv. S Sharma (Lawyer) (574 Points)

04 March 2008

HI ALL

PLZ TELL ME THE GIFT PROVISIONS UNDER INCOME TAX ACT

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11 Replies

pushpendra (Director- FinMAT Consultants) (1703 Points)
Replied 04 March 2008

Gift Tax has been abolished but under the income tax act it is taxable in the hand of receiver if it is not a relative. defination of relative for this section is specifically given under section 57 . this defination of relative is wider than the defination of relative given in the section 2 of Income Tax Act. Gift is Taxable under section 56(2)(V)/(vi) of Income Tax Act.

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Rakesh (Asst Manager) (209 Points)
Replied 05 March 2008

u can also received gift from person other than relative by crossed chequed maximum up to RS 50000

(Guest)

Hi Sachin!The provisions relating to gift are contained in section 56 (vi) of the IT Act. Any sum exceeding an aggregate of Rs.50,000/- in a year recd by an individual or HUF without consideration shall be chargeable to income tax, subject to some exceptions given under the said section like, gift from relative, gift on the occassion of marriage, gift under a will etc. Note that the term "relative" has been also defined under the said section.

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 05 March 2008

Refer Sec 56(2)(V) of Act.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 05 March 2008

Mr.Sachin Sharma. Kindly give your e-mail ID.I will send relevant detailed files regarding this provision.Even we can find it in share files section.

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Adv. S Sharma (Lawyer) (574 Points)
Replied 05 March 2008

Hello Mr. Sriram my id is sachin_ada @ yahoo.co.in

Adv. S Sharma (Lawyer) (574 Points)
Replied 05 March 2008

One More Querry ? Foreign Comapny invested in an Indian Compoany in the shape of share application money. now, Foreign comapny want its money back but Indian Company is not in a condition to give back the share application money to foreign company. foreign company now saying waive the share application money because its very low amount for foreign company. now the question is, the waived money become the income of indian company. how can Indian Company treat it, like under what head? does the indian company will treate it as gift, capital gain, income from other sources ? what actly or in which account it will come of foreign company ?