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Taxation Liability on gift received in India

Taxation Liability on gift received in India

As Per section 56(2)(vii) read with capital gain tax,

Applicability: Only on Individual and Huf

Transaction Applicability: Only on Three Transaction Covered under such Section

(a) any sum of money, without consideration , the aggregate value of which exceeds Rs. 50,000/-, the whole of the aggregate value is taxable,
(b) any immovable property,
(1) without consideration, the stamp duty value of which exceeds Rs. 50,000/-, the stamp duty value of such property is taxable,
(II).Received for a consideration which is less than the stamp duty value of the property and difference is more than Rs.50,000/-
then such difference is taxable
(c) any property other than immovable property,-
(I).without consideration , the aggregate fair market value of which exceeds Rs. 50,000/-, the whole of the aggregate fair market
value is taxable,
(II).Received for a consideration which is less than the aggregate fair market value of the property and difference is more
than Rs.50,000/- then such difference is taxable

Taxation Liability on gift received in India

Transaction Which is Not Covered: Any amount and/or property received not taxable under such section
1) From Relative
2) on the Marriage of indiviual
3) by will or inheritance
4) death of the payer or donor
5) From Local authority
6) person referred in clause (23C) of sec. 10 i.e. any fund, foundation, university,educational institute, hospital, medical institute
7) trust registered under sec 12AA

Taxation Liability on gift received in India

Explanation:
1) Property include:

i Immovable property being land or building or both,
ii Shares and securities
iii Jewellery
iv Archaeological collection,
v. Drawings,
vi. Paintings,
vii Sculptures,
viii Any work of art,
ix. Bullion.

2) Relative include:

i. Spouse of individuals
ii. Brother or sister of 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 above clauses.

Taxation Liability on gift received in India

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Taxation Liability on gift received in India

Taxation Liability on gift received in India

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