Machinery gift, please help.

Ankush (Student) (1369 Points)

05 August 2017

What would be the tax treatment for machinery worth 11 lakh received for 2 lakh subject to fulfillment of condition in 3 years time.

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Dhruv Shah (Article Student) (357 Points)
Replied 05 August 2017

I think the difference between the cost & market price will be chargeable to tax(Capital gain) as it is exceeding Rs.50,000.

Dhruv Shah (Article Student) (357 Points)
Replied 05 August 2017

sorry, it is chargeable as gift under income from other sources

Ankush (Student) (1369 Points)
Replied 06 August 2017

Thank you sir

Sudiesh (Audit Assistant) (527 Points)
Replied 07 August 2017

Machinery is not covered in definition of property u/s 56. so i think it is not taxable under head other source.

Dhruv Shah (Article Student) (357 Points)
Replied 10 August 2017

Oh yes...Thank you Sudiesh for correcting me.

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