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Tax implication.. plz help

nitin (associate) (29 Points)

17 August 2011

if an individual gift (or min consideration) any movable asset (or cash) to any company.. den wat wil b da tax implication..??

coz sec 56(2)(vii) applies only wen is recieved by individual or huf.. and sec 50c is also not applicable..

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V.MASTHANVALI (ACCOUNTS EXECUTIVE) (89 Points)
Replied 17 August 2011

As Income tax Act , 1961 is silent on this issue.. i.e., the exemptions u/s 56(2)(vii) is applicable only to the Individual and HUF. The amount which is received by the company from the Individual is "TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES".

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Krutesh Patel (ACA) (727 Points)
Replied 17 August 2011

If gift has been made in relation to business or profession, then the amount will be taxable to company as business income u/s 28 as it is value of benefit arising out of business or profession.

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Ashwani Narnoli (.) (1843 Points)
Replied 17 August 2011

yes it will be taxable under the head PGBP u/s 28

camahesh kumar (chartered accountant) (33 Points)
Replied 17 August 2011

Yes , it taxable U/s 28 of income tax act. in the hands of compaines

V.MASTHANVALI (ACCOUNTS EXECUTIVE) (89 Points)
Replied 18 August 2011

Originally posted by : V.MASTHANVALI
	As Income tax Act , 1961 is silent on this issue.. i.e., the exemptions u/s 56(2)(vii) is applicable only to the Individual and HUF. The amount which is received by the company from the Individual is "TAXABLE UNDER THE HEAD INCOME FROM BUSINESS".