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Query on Gift Tax

Piyush (article) (110 Points)

08 January 2010

Dear Sir/Madam

1. Is there a cap on immoveable property gifts made to relatives?
If yes then at what rate gift tax is levied?

2. What is the definition of relative?
Does a sister or brother fall under the category of relative under gift tax?

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12 Replies

Naveen (Learner) (116 Points)
Replied 09 January 2010

Piyush..

Yes, As per section 53 (2) (vi) gifts in access of 50,000 (in cash) are taxable exept on some occassions and from relatives. Please go through section 53 (2) (vi) for details.

Gifts in kind are not taxable at all. However for tax implications you will need to see the rules relating to clubbing of income.

Yes, Brother and sister fall in the definition of Relative for the purposes of this section.

Thanks.

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Amir (Learner) (4016 Points)
Replied 09 January 2010

Dear Piyush,

Just want to correct waht Naveen said that the Secis 56(2) and with the Finance Act 2009, Gifts in KIND has also been made taxable exceeding Rs. 50,000...

Provided further that this clause shall not apply to any sum of money or any property received—

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(d) in contemplation of death of the payer or donor, as the case may be; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Relative means:-

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);]

3 Like

CA Reetika Agarwal (Chartered Accountant) (43 Points)
Replied 09 January 2010

Dear Peeyush,

Plz find the attached file.It will definitely solve your querry.

Attached File : 59 gift tax.doc downloaded: 496 times

2 Like

C.Balaji (Learner) (1867 Points)
Replied 13 January 2010

thanks to CA Reetika Agarwal......very useful for all......

VIKAS AGARWAL (MANAGER) (44 Points)
Replied 05 March 2010

i want to take gift of shares from my brother Rs 1,00,000.As he is my brother then no GIFT TAX issue ,shall I have to make a gift deed or not ???????.............

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Sudha M (0) (23 Points)
Replied 30 March 2010

Is gift received/given from/to maternal uncle of the spouse of individual falls under the category "any lineal ascendant or descendant of the spouse of the individual"? kindly advise

Sudha M (0) (23 Points)
Replied 30 March 2010

Is gift received/given from/to maternal uncle of the spouse of individual falls under the category "any lineal ascendant or descendant of the spouse of the individual"? kindly advise

CA Ankit Gangal (Audit Manager) (242 Points)
Replied 01 April 2010

what is the coverage under lineal ascendent or discendent of the individual?

C.Balaji (Learner) (1867 Points)
Replied 01 April 2010

Dear Ankit....

What u exactly want????

Sudha M (0) (23 Points)
Replied 01 April 2010

Dear Balaji,

Thanks for the interest you are showing. I want the answer to the question

WHO ARE ALL COVERED UNDER THE CATEGORY any lineal ascendant or descendant of the spouse of the individual"? IS MATERNAL UNCLE OF THE SPOUSE OF THE INDIVIDUAL WILL BE TREATED AS A RELATIVE FOR THIS PURPOSE?

SUDHA.M

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Amir (Learner) (4016 Points)
Replied 01 April 2010

Dear Sudha,

All it is not clear but I think,

Maternal Uncle of the spouse will NOT be covered under Lineal Ascendant or Descendant

https://www.hindu.com/biz/2005/10/10/stories/2005101000421700.htm

MONICA (CA) (29 Points)
Replied 22 April 2010

AMIR...

CAN U PLZ TELL WEATHER GIFT OF A IMMOVABLE PROPERTY ABOVE 50000..EX A GEM OF 1,00,000 GIVEN AS GIFT TO NON-RELATIVE FOR 30,000 WILL 70000 BE TAXABLE OR 70000-50000 I.E 20000 B TAXABLE..??