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Income tax

sujith pj (m,com) (185 Points)

28 March 2013

Hi Friends,

If the company receives more than 50000 cash as a gift, tel me whether it is taxable income or not,

and if its not, please tel me how.

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10 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 28 March 2013

how can a company receive gifts being a artificial person?

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nikhil ((CA Final) Article) (363 Points)
Replied 28 March 2013

Company can not receive gift whole amount will be taxable

Pawan Mittal (CA Final) (711 Points)
Replied 28 March 2013

Dear Sujith,

I don't know whether a company receive or give gifts.

But this is for sure that if the amount of gift exceeds Rs. 50000 than it will be taxable as the income of the company. The exemption of gift exceeding Rs. 50000 received from relative is available only to an Individual and HUF.

vishal suryan (CA Final) (125 Points)
Replied 28 March 2013

if suppose on any occation of its meeting or any aniversary it got any gift anything like Costly Painting;s suclpture, weather it is gift taxable

Ramanuj (Accountant.) (834 Points)
Replied 28 March 2013

I think Company not received as gift. how can taxable or not. if any indivitual received execeed 50000 the it is taxable.

Thanks

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CA BHUMIT SHAH (Consultant ) (270 Points)
Replied 29 March 2013

IF A PRIVATE LIMITED COMPANY RECEIVES GIFT FROM ANOTHER PRIVATE LIMITED COMPANY EXCEEDING RS 50000 THEN ONLY IT IS TAXABLE OTHERWISE IT IS NOT TAXABLE

(Guest)

Please attach any notification/circular/sections relating to receipt of gift by pvt ltd company and its taxability.

Pooja (Final CA) (502 Points)
Replied 30 March 2013

Gift received by the Company is Taxable.

Exemption is available only to Individuals & HUF's under certain conditions as per 2nd provisio to section 56(2)(vii).

CA BHUMIT SHAH (Consultant ) (270 Points)
Replied 31 March 2013

IF A PVT LTD CO RECEIVES GIFT OF SHARES FROM ANY PERSON OF PVT LTD CO AND IF F.M.V EXCEEDS RS 50000 THEN ONLY IT IS TAXABLE OTHERWISE IT IS NOT TAXABLE.HOWEVER THIS PROVISION DONOT APPLY TO PUBLIC LTD CO.THUS IF COMPANY RECEIVES MORE THEN RS 50000 IN CASH IT IS NOT TAXABLE .THIS PROVISION IS AS PER SEC 56(2)(V111a).thus if company receives cash it is not taxable

nikhil ((CA Final) Article) (363 Points)
Replied 31 March 2013

Originally posted by : CA BHUMIT SHAH
	IF A PVT LTD CO RECEIVES GIFT OF SHARES FROM ANY PERSON OF PVT LTD CO AND IF F.M.V EXCEEDS RS 50000 THEN ONLY IT IS TAXABLE OTHERWISE IT IS NOT TAXABLE.HOWEVER THIS PROVISION DONOT APPLY TO PUBLIC LTD CO.THUS IF COMPANY RECEIVES MORE THEN RS 50000 IN CASH IT IS NOT TAXABLE .THIS PROVISION IS AS PER SEC 56(2)(V111a).thus if company receives cash it is not taxable