Gifts
The income tax department considers gifts as fixed asset such as land and building, currency given in cash or cheques. Gifts can be regarded as movable property like shares, debentures, jewelry or paintings.
When are gifts exempt from tax
Gifts are exempted from tax under following circumstances:
When gifts are received from relatives.
When received on the occasion of marriage.
When received from local authority.
When received by the way of inheritance
When received in the case of death of the payer.
When a number of gifts received is less than Rs 50,000.
Revived from an institution, fund, university, hospitals or educational institutions.
Money received from a charitable institution under the provisions of the section 12 A.
What does the term relative mean?
Your direct family members are included in this such as parents, siblings, and spouse.
Your siblings and their spouses are also included.
Your parent’s siblings.
Your spouse’s immediate family such as spouse’s parents and siblings.
Some important points to understand
If a gift received is money and the total amount of money received as a gift is more than Rs 50,000 then it is chargeable to taxes.
If a gift received is immovable land and the total amount of stamp duty of property is more than Rs 50,000 then the value of stamp duty is chargeable to taxes.
If gifts received is immovable property but with some consideration and the amount of stamp duty, less consideration is more than Rs 50,000 then stamp duty less consideration received is chargeable to taxes.
If the movable property is received as a gift without any consideration and market value is more than Rs 50,000 than the fair market value is chargeable to taxes.
If the movable property is received with consideration and the total amount of market price less consideration is more than Rs 50,000 than market value less consideration is chargeable to taxes.
You can file individual ITR - TDS & IT, with the best online portal for filing tax returns – TaxRaahi.
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