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taxability of gift

(Guest)

Hello,

Is gift received as marriage gift from a friend after a month of d marriage is taxable U/s ? of IT ACt

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14 Replies

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 29 April 2010

yes it is taxable if the value of gift exceeds rs.50000.because the benefit u/s 56 is applied only when gift is received on the occasion of the marriage of the individual

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Aditya Khaitan (Manager Accounts & Tax) (40 Points)
Replied 30 April 2010

From Assessment Year 2010-11 any gifts received in excess of rs 50000/- during a year will b taxable.

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 30 April 2010

dear aditya sir

i agree with u but this is not applicable in some specified cases as mentioned earlier in sec.56(2)(vi) and new section 56(2)(vii) which is effective from 1.10.09.plz aditya sir kindly read the amendmnet made in finance act. free whether it value exceed rs.50000 or not.

Amir (Learner) (4016 Points)
Replied 30 April 2010

Hi Friendz,

Nice discussion...........!

I think in the present case two questions needs to be answered.

First a question of fact - "Whether Gifts received were ACTUALLY meant for the OCCASION of marriage or not? - So lets not focus on this cos this will vary from case to case.

Second a question of Law - "OCCASION" - is it related to "OCCURENCE OF AN EVENT ONLY" or "occurence of an event AT A POINT OF TIME"

I am not very sure but would like to go with the first one so it will be exempt....

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 30 April 2010

Similar query relied here /experts/whether-gift-taxable--380705.asp

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manikandan.J (Accounts Manager) (363 Points)
Replied 30 April 2010

i am attached material related to queries about the gift tax notes briefly and applicability of percentage also

Attached File : 43 exemption gift brief notes.doc downloaded: 203 times

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 30 April 2010

Hi,

Good discussion going on..

I want to know what is the relevance of time of receipt of gift (means other than unreasonable lapse of time), how can it be established at the time of assessment that gift was received after 30 days of marriage(if it is in same A.Y) if one claims that it is on date of marriage. i.e whether bill has to be produced which is not possible.

So, as per my view a reasonable period around the occurrence of event will be easily taken as the exempted gift i.e the gift is on account of the event.

thanx

sandeepverma (don't make exuse for study) (304 Points)
Replied 30 April 2010

Pradip Narsingani (Income Tax & GST Consultant/ CA-Final) (572 Points)
Replied 30 April 2010

From A. Y. 2010-11 any gifts received in excess of rs 50000/- during a year will b taxable.and there are on the occasion of the marriage ok

CA Kushal Rawal (C A ) (42 Points)
Replied 30 April 2010

If Gift received in cash is more than 50000/- than the whole amount of Gift will be taxable.

From A Y 2010-2011 Gift received in kind is also taxable if its value is more than 50000/-

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DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 30 April 2010

dear kushal i am not agree with u bcoz in a/y 10-11 there are applicability of two different sections in respect of gift. suppose a cash gift of rs.50000 is received on 1.6.09 and another cash gift of rs.50000 is received on 1.12.09 then the whole amount is exempt bcoz before 1.10.09 sec.56(2)(vi) applies and after 30.9.09 sec.56(2)(vii) applies

sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
Replied 01 May 2010

here in income tax provisions it's clearly stated that

on the occasion of the marriage of the individual;

now the word occasion means

the day in which the marriage was

so after the one month it's taxable

but practically

gift par dates kaha hoti hai

whenever you received the gifts you can raise that it's on the date of occasion of the marriage and when the you need the invoice you can get from you frend

CA Kushal Rawal (C A ) (42 Points)
Replied 01 May 2010

Mr Tarun...

The sec 56(2)(vi) deals with the gift received in cash &

The new sec. 56(2)(vii) is inserted w.e.f 1.10.2009 deals with gift received in kinds(like shares, immovable properties etc.).

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 02 May 2010

mr kushal plz read this carefully and if u find the same answer as u submitted then make me correct

In section 56 of the Income-tax Act, in sub-section (2),—

(a) with effect from the 1st day of October, 2009,—

(i) in clause (vi), after the words, figures and letters “on or after the 1st day of April, 2006”, the words, figures and letters “but before the 1st day of October, 2009” shall be inserted;

(ii) after clause (vi), the following clause shall be inserted, namely :—

‘(vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,—

(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;

(b) any immovable property,—

(i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;

(ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration;

(i) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property