Taxability if gift

Dear Prity,

1) There is no limit for giving gifts to relatives.

2) Gifts received from persons other than relatives are taxable in the hands of receipent if aggregate of such gifts in a year exceeds Rs. 50,000...

3) There is no limit on gifts made on the occasion of marriage.

In short,

Gifts to relatives - Exempt whether on their wedding or not.

Gifts on wedding - Exempt whether to a relative or not.

Dear Prity,
what Amir has said is absolutely correct...
Further this article might help you.....
/articles/gift-u-s-56-2--5544.asp

Very nicely explained

Also u can visit this link https://www.itatonline.org/articles_new/index.php/law-on-taxability-of-gifts-a-comprehensive-analysis/

Agree with them

Thanks ...

no limit

agree with amir

the taxability limit provided u/s 56(2)(VI) states that if any gift is given to a non relative and the aggregate amount of cash recieved exceeds Rs 50000 for the whole year then  the aggregate amount of gift recieved would be taxable in the hands of recipient.

if the gift is provided in kind before  1st of october 2009,then the amount of gift recieved would not be taxable but as per section 56(2)VII) if any gift(kind) is recieved from a non relative(on or after 01/10/2009) and the fair value/stamp value of that property  exceeds Rs 50000 the whole amount would be taxable

for example

a lot of securities was transfered by Mr A to  MR B (NON RELATIVE ) without any consideration and the fair value of the securities on the date of transfer was RS 85000 THE taxability in the hands of Mr B would be Rs 85000 as per section 56(2)(VII). any  gift recived oin the occasion of marriage would be exempt . ANY GIFT RECIEVED FROM A RELATIVE IS EXEMPT

section 56(2)(viii) Taxability of gift

Gift from relatives is fully exempt

Relatives-

1 Spouse of the individual

2 Brother and sis of the individual

3 brother and sister of spouse of the individual

4 lineal ascendent or descendent of the individual

5 lineal ascendent or descendent of spouse od the individual

6 bro and sis of parents of individual

7 spouse of persons in clause (ii) to (vi)

Gift is taxable in the hands of the person receiving the gift if the aggregate of such amt received during the year is more than Rs 50000. Then whole amt is taxable.

Now following assets if received without consideration or with consideration less than the stamp value or fmv is also taxable if the difference amt is more than 50000

land and building

jewellery

work of art

draWING

PAINTING

SCULPTURES

archeological collection

All gifts received on occasion of marriage are exempt 

Gifts received From Relatives

fully exempt from tax. Whether you are received the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts.

Here the “relatives” term defines by the Income Tax act as follows :

1. Spouse of the individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. Any lineal ascendant or descendant of the spouse of the individual,Spouse of the person referred to in clauses (ii) to (vi).

Gifts received From Non-Relatives

Here non-relatives means anyone who doesn’t come under the above mentioned relation for you. In this case you are tax exempt up to maximum of Rs.50000 for a financial year.

Marriage Gifts

 There is no monetary limit attached to this exemption.

Special Tax Exempt gifts

The following list of gifts are fully exempted from Tax whether the it is received as Cash, or any other form of the material doesn’t affect the exemption.

1. Gift received under a Will or by way of inheritance
2. Gift in contemplation of death of the donor;Gift from any local authority
3. Gift from any fund or foundation or university or other educational institution or hospital or any trust or any institution referred to in Section 10(23C)
4. Gift from any trust or institution, which is registered as a public charitable trust or institution under Section 12AA

Dear Prity

- no limit for giving gifts to relatives.

- Gifts in kind are taxable in hands of receipent only if he is individual or HUF................  

- If received from other than relatives then taxable only if it exceeds 50000......

- no limit on gifts made on the occasion of marriage.

YES.

Priyanka is absoultely right.

There is no limit for giving gifts to relatives.

priyanka is  right