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Gold coins recd from company

17 September 2019

Dear sir
One of my client received Gold coins from Company as business promotion ...how do we account in books of ACCOUNTANTS and in income tax..
Thanks

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4 Replies

Pallerla Vamshi (25 Points)
Replied 17 September 2019

Gold coins were received in course of business i. e., any gifts received in course of business shall be accounted for as a PGBP income as per sec 28
The FMV of gold coins were accounted for as income and offered to tax as PGBP income as per sec 28

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Kapadia Pravin (17259 Points)
Replied 17 September 2019

In the hands of the receipient person , (Proprietor, Chief manager, Partner whoever ) Gold Coin will be treated as Gift from Non-relative.

FMV of Gold Coin will be Gift amount and Gift upto 50000/- in aggregate is Exempt.