Taxability of Gift under Income Tax Act, 1961

As per Income Tax Act, receiver (donee) of gift is charged to taxation u/s 56(2)(vii). The donor of gift is not charged to taxation under this section. However, the below cases is analyzed from the taxation as applicable to donor ( Capital Gain taxability) and donee ( Gift taxability under I.Tax Act).

56(2)(vii): Gifts received by Individual & HUF

56(2)(vii) is applicable only when gifts are received by Individual and HUF.

Donor or Donee may be Resident or non Resident.

Cash: If aggregate value is less than Rs.50000 than nothing will be taxable. If value exceeds Rs. 50,000, the whole amount will be taxable.

Movable* Property**:

Without Consideration:

(i) If aggregate Fair Market value is less than Rs.50000/- than nothing will be taxable.

For Donor: No Capital Gain because u/s 47(iii), it is not considered transfer.

For Donee:

– 56(2)(vii) is not applicable.

– Cost of Acquisition (COA) will be previous owner’s Cost as per Sec 49(1).

 – Holding period of previous owner period will be counted for donee.

(ii) If aggregate Fair Market value is more than Rs.50000 :

For Donor: No Capital Gain because u/s 47(iii), it is not consider transfer.

For Donee:

– COA will be Fair Market Value (FMV)

– FMV shall be income from other Sources u/s 56(2) (vii).

– Holding period will be counted from the date of acquisition of property by donee.

Inadequate Consideration:

if the difference of consideration and FMV is greater than Rs.50000/- than differential amount will be taxable for receiver and the treatment shall be the same as mentioned in (ii) above.

*Movable property means Shares and Securities, jewellery, Archaeological collection, Drawings, Paintings, Sculptures any work of art, bullion.  If any movable property other than above is gifted than there is no taxability.

**Property means Capital Assets in the hands of Receiver means if property is Stock in Trade, Raw Material & Consumable Stores for receiver than it will not taxable.

Immovable Property (Land, Building or Both):

Without Consideration:

(iii) if Stamp Duty value(SDV) is less than Rs.50000/- than nothing will be taxable.

For Donor: No Capital Gain because u/s 47(iii) it is not consider transfer.

For Donee:

– 56(2)(vii) is not applicable.

– COA will be previous owner Cost as per sec 49(1).

 – Holding period of previous owner period will be counted for donee.

(iv) if Stamp Duty value is more than Rs.50000/- :

For Donor: No Capital Gain because u/s 47(iii) it is not consider transfer.

For Donee:

– SDV is income from other Sources u/s 56(2)(vii).

– COA will be SDV.

– Holding period will be counted from acquisition of property by donee.

Inadequate Consideration:

if the difference of consideration and SDV is greater than Rs.50000/- than difference amount will be taxable for receiver (Applicable from A.Y.14-15).

For Donor: Sec 50C will be applicable if Land & Building is capital Assets for Donor and Sale Consideration for Donor will be SDV. Capital Gain will be SDV – COA. Sec 43CA (From A.Y 2014-15) will be applicable if Land & Building is not a capital Assets for Donor and Sale Consideration for Donor will be SDV. Income from PGBP will be SDV – COA.

For Donee: Difference of SDV and Consideration is income from other Sources u/s 56(2)(vii).

At the time of further sale COA will be SDV and holding period will be counted from acquisition of property.

Exception: In below circumstances, gifts are not taxable even if value is greater than Rs.50000/-.

Gifts received:

i. From Relatives1

ii. On the marriage of individual,

iii. By will or inheritance

iv. In contemplation of Death of payer

v. From local authority

vi. From Charitable Trust registered u/s 12AA

vii. From Any Trust, Foundation etc referred u/s 10(23c).

1 Relatives means

– Spouse of Individual

– Brother & Sister of Individual

– Brother & Sister of Spouse of Individual

– Brother & Sister of either of the parents of Individual

– Any Lineal ascendants or descendants of the individual

-Any Lineal ascendants or descendants of the spouse of the individual.

Below is a comprehensive list of Donors as per definition of relative under I.Tax Act ( Hindi connotation has also been mentioned)

List of Male Donors  List of Female Donors
Father (Papa or Pitaji) Mother (Maa or Mummy)
Brother (Bhai) Sister (Bahin)
Son (Beta or Putra) Daughter (Beti or Putri)
Grand Son (Pota or Potra) Grand Daughter (Poti or Potri)
Husband (Pati) Wife (Patni)
Sister’s Husband (Jija) Brother’s Wife (Bhabhi)
Wife’s Brother (Sala) Wife’s Sister (Sali)
Husband’s Brother (Dewar) Husband’s Sister (Nanad)
Mother’s Brother (Mama) Mother’s Sister (Mausi)
Mother’s Sister Husband (Mausa) Wife’s brother’s wife (Sala Heli)
Father’s Brother (Chacha or Tau) Father’s Brother’s Wife (Chachi or Tai)
Father’s Sister’s Husband(Fufa) Father’s Sister (Bua)
Grand Father (Dada, Pardada) Grand Mother (Dadi, Pardadi)
Daughter’s Husband (Jawai) Son’s Wife (Bahu or Putra Vadhu)
Spouse Father (Sasur) Spouse Mother (Sas)
Spouse Grand Father (Dada Sasur) Spouse Grand Mother (DadiSas)
Brother’s Wife (Bhabhi) Mother’s Brother’s Wife (Mami)
Husband’s Brother’s Wife (Devrani or Jithani)

56(2)(viia): Receipt of shares by a firm or closely held Company.

Applicable if:

1. Shares belong to a closely held company.

2. Donor is any person.

Without Consideration: if Fair Market value is more than Rs.50000/-:

For Donor: No Capital Gain because u/s 47(iii) it is not consider transfer.

For Donee: FMV is income from other Sources u/s 56(2)(viia).

At the time of further sale COA will be FMV and for calculation of holding period previous owner period will be counted for donee.

Inadequate Consideration: if the difference of consideration and FMV is greater than Rs.50000/- than difference amount will be taxable for receiver.

For Donor: Capital Gain will be sale price – COA.

For Donee: Difference of FMV and Consideration is income from other Sources u/s 56(2)(viia). At the time of further sale COA will be FMV and holding period will be counted from the date of acquisition of Shares.

Exception: if Shares are received in nature of 47(via,47(vic),47(vicb),47(vid),47(vii) )(i.e. amalgamation ,merger, demerger. reorganisation etc.)

56(2)(viib): If Shares issued at premium in excess of FMV by a closely held Company

This applies to shares issued at a premium to resident person which is more than FMV. The difference of FMV and sale consideration will be taxable for a receiver i.e. closely held Company.

FMV of Shares will be higher of Value as calculated under rule 11UA or As calculated by Company to the satisfaction of A.O.

Exception:

– If consideration is received by Venture Capital undertaking from Venture Capital Company or a Venture Capital Fund or

– If consideration is received by a class of companies notified by Central Government.

VALUATION RULE: Movable or Immovable properties shall be valued as follows:

Immoveable Property:  SDV  of the property but if date of agreement for fixing the consideration and date of registration are not same than date of agreement will be considered for SDV (Applicable from A.Y.2014-15).

Movable Property: FMV will be as follows:

→ Jewellery, Archaeological collection, Drawings, Paintings, Sculptures any work of art, bullion:

a. Purchased from registered Dealer (under VAT):  invoice Value will be FMV.

b. In any Other Cases: Value of Property is less than Rs.50000/- than at which rate it can be sold in the open market will be FMV. And if value of property exceed Rs.50000/- than assessee has an option for FMV either it can be sold value or he can take report of registered valuer.

→  Quoted Shares and Securities:

a. If Transaction is done through RSE than transaction value recorded in stock exchange

b. If Transaction is not done through RSE than the lowest price quoted on any RSE in india for such share and securities as on the date of valuation and if transaction is not done on the valuation date  regarding such shares and securities than the lowest price will be taken immediately preceding the valuation date.

→ Unquoted or Unlisted Shares & Securities:

-Unquoted Equity Shares:

Net worth * paid up value of one share÷ Total Amount of paid up equity sh. Capital

Net Worth: Assets – Liabilities.

Assets:

Include: Book Value of all Assets i.e. Fixed Assets, Current Assets, Investments. It does not Include: Advance Tax, TDS & TCS, Dr Balance of P & L A/c, Miscellaneous Expenditure, and Discount on issue of  Debenture not written off.

Liabilities:

Include: book value of all liabilities i.e. Preference Share Capital, Debenture, Loans (Secured & Unsecured),Current Liabilities ,Ascertained Provisions, Depreciation Reserve, Dividend on Equity & Preference Share (declared before Transfer),Current Provision for Income Tax-Advance Tax –TDS & TCS, Arrears of Divided on Preference Shares even if shown under contingent liabilities. It does not Include: Equity Share Capital, Provision for unascertained liabilities, Contingent Liabilities (except arrear of dividend of Pref. shares), Reserve & surplus

Or

Value determined by merchant banker or accountant

– Other Unquoted or Unlisted Shares & Securities: at which rate can be sold in market or a report from merchant banker or C.A.

(Usha Garg- usha@klaggarwal.com – www.klaggarwal.com)

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Tags : Gift (84) gift from relatives (34) gift in kind (32) section 56 (107) Tax on Gift (43)

76 responses to “Detailed Analysis- Gifts Taxation under Income Tax Act, 1961”

  1. Daughter says:

    I pay Rs.15000 to my parents every month from my salary as a gift. I woudl like to reduce this from my taxable income and include it in their taxable income. How to do that while filing my returns on the incometaxefiling portal?

  2. pradeebp dhabalia says:

    can my sister husband (jijayaji) to me (sala) and my younger brother (sala), and my father (sasurji) rs. 100000 eacgh

  3. Mudith says:

    Dear Expert,
    Is the amount / gift received by HUF on the occasion of marriage of individual is exempt U/S 56(2)(vii)

  4. Chandramouli.S.S says:

    I am planning to build a commercial building on the plot owned by me and for this my son who is working in USA at present wants to transfer money to the tune of 80 lakhs. How to go about this process legally so that we do not have to pay any gift tax nor income tax on this money transferred to my account.

    • Khushboo shah says:

      My dad wants to transfer some shares in mom’s name as a gift bt she wants have any other income .so is this income clubbed in my father’s income??

  5. SATHISH KUMAR says:

    Sir,
    It is regarding Gift tax. I would like to gift some amount to my Mother-in-law. If she, in turn, gifts the same amount to my Wife, whether I should consider clubbing of my income. Please reply.

  6. M Mariswamy says:

    I have intend to gift Rs.15 lakh to my daughter for purchasing of flat at bangalore.

    The above transaction is attract any gift tax under income tax act prevailing in India.

    Please clarify the said matter.
    Thanking You

    • kamlesh Patel says:

      I want to transfer aus$ to my daughter or son in law (NRI) as gift howmuch tax free amount I can transfer as gift

  7. B Mishra says:

    Central govt took over my naani’s field for building road and gave her the compensatory amount after deducting the taxes.now c wants to give the amount to me ie her naati .My question is whether the amount is taxable or not?

  8. KB says:

    Will Gift to Masis daughter not exceeding 50000 in a year attract any tax?

  9. Alok kumar says:

    one employee of a company died .some friend also co-employees decided to provide support to his wife & children(Minor) of deceased friend by giving money to them.The amount contributed is more than rs 500000 .What is taxability in hand of deceased wife.

  10. jd says:

    can a son gift to his nana(mother father)

  11. amandeep singh says:

    my uncle(my father’s sister’s husband (fufa ji). can my fufa ji gift me property amounting rupees 53 lakhs and what should be the tax i have to pay? weather immediate tax or at the time of selling the property? doner and the reciever (me) both are indian and the property also in india.

  12. rahul says:

    Can my younger Brother’s Wife can gift to my wife of Rs. 1,00,000/- (One Lacs)

  13. Bhavin Shah says:

    Yes, MIL can gift to her son in law subject to valuation should be less than 50k , If transferred without considertation then entire value of such property subject to the sdv of this property is taxable.

    Email -theintegrateservices@gmail.com

  14. Bhavin Shah says:

    Donor / donee can be either Resident or Non resident

  15. Bhavin Shah says:

    take it in cheque. if you are thinking to take it in the form of gift then you can’t take but as a unsecured loan with regular payment of interest then you can in your business.

  16. Bhavin Shah says:

    Interest income would be taxable in the hands of Donor subject to deduction 80TTA currently.

    Write & follow us @ https://theintegrateservices.w

    E-mail – theintegrateservices@gmail.com

  17. Bhavin Shah says:

    It will be taxable in your husband’s hand. Thank you.

    E-mail – theintegrateservices@gmail.com

  18. Bhavin Shah says:

    In my opinion, Taxability of Interest income of Rs. 24,500.00 would be in the hands of Donor – Thanks to clubbing provision.

    If HuF received above sum of money inheritance then it won’t be taxable.

  19. Bhavin Shah says:

    Your uncle can gift you in his individual capacity but not as a KARTA of their HUF., In my opinion – I am also not sure but i replied based on my logical discretionary power.

    Contact : for more information , we would like to help you in this matter.

    E-mail : theintegrateservices@gmail.com

  20. Bhavin Shah says:

    In my opinion, The contention of I.t. department is right. Gift received by the Relative is exempted but Nanaji is not covered up within the definition of relative.

    No doubt there is required clarification degree of generation up to what you can benefit but that benefit you can take to argue and get 0 penalty

    maternal grand father not covered up.

    For more guidance and discussion :
    Contact :
    CA Bhavin Shah
    E-mail: theintegrateservices@gmail.com

  21. Bhavin Shah says:

    In fact, If your wife is active businesswoman then you may show it as a pure unsecured loan on the basis of relation and trust and by that way you can avoid tax.

    Otherwise prima facie certainly you would get notice from i.t. department.

    E.g. Take an example of case of Mr. Shahrukh khan and Gauri Khan

    Contact us for more discussion and service:
    CA Bhavin Shah
    The Integrate Services

  22. Bhavin Shah says:

    If brother and his spouse gift to his sister and her spouse, means brother and his wife of a girl to that lady as well as her husband. in such case it would be taxable in the hands of that lady as well as husband if such value above limit. , in my opinion.

    I may understood your question wrongly. you may write us again

    Contact
    E. theintegrateservices@gmail.com
    CA Bhavin Shah

  23. Bhavin Shah says:

    Yes, James – Your father can gift you. It’s absolutely possible. but in such case the entire value of such property equivalent to the amount of stamp duty valuation would be taxable.

    Contact
    E. theintegrateservices@gmail.com
    CA Bhavin Shah

  24. Bhavin Shah says:

    Yes, it can be transferred but before that we need to ask you exact facts of your case. We are helping people by creating Offshore companies / trust in Mauritius
    Kindly write us :
    For Tax & technical discussion:
    Contact
    E. theintegrateservices@gmail.com

    CA Bhavin Shah

  25. Bhavin Shah says:

    First of all – no one indian company would accept it. Further, if you are working abroad, then you may do like that but it would be taxable in their hand and you have to create wrong consultancy biz for them.

    If you are not willing to do that then it would unsecured loan to your parents – accounting treatment
    and in Taxation- Interest earned on that F.D. would be taxable in your hands – Thanks to clubbing provisions.

    For Tax & technical discussion:

    Contact
    E. theintegrateservices@gmail.com
    CA Bhavin Shah

  26. Bhavin Shah says:

    It would be taxable because Your sister’s son is not covered up within the definition of Relative. Your sister can gift you but not your sister’s son.

    For more clarification & discussion:

    Contact for more discuss & Chat –
    E. theintegrateservices@gmail.com
    CA Bhavin Shah

  27. FAIJAL says:

    I have doubt plz Clarify…….

    section 56 (Gift) mai Immovable Property (Land, Building or Both), but Sir Donor ne Third Person ko Hotel Gift kiya usme Land or Building include hai but sir Donee ke hands mai tax Calculation mai only Land and Building but not Hotel Furniture Taxable nahi hoga….kyu ke Section 56 Mai immovable property mai Only Land & Building Taxable Hoga…..NOT INCLUDE hOTEL FURNITURE IN HAND OF DONEE….

    • Bhavin Shah says:

      In My opinion – L&B would be convered by the section of Immovable property where as Furniture and all other accessories would be covered by Movable property clause.

      Contact for more discuss & Chat –
      E. theintegrateservices@gmail.com
      CA Bhavin Shah

  28. manoj says:

    Thank you for this wonderful clarification and explanation of the above relationship on transfer of gift.

    I have a doubt please clarify:

    My Bhanja ( Sisters son ) purchased an agriculture property in 2008 and now he wants to gift that same property to me ( mama ). What would be tax implication. Can you clarify whether it is taxable or non-table.

  29. Khushbu says:

    What if I transfer my salary to my Parents accounts (Joint Bank account) and they create fixed deposit of that money. What will be the tax implications on interest earned on fixed deposit?

  30. Rohit says:

    If a relative has huge salary income say 4-5 crores, can it be transferred to other family members, for converting black into white money.

  31. James says:

    My father purchased a property in 21/5/2010 worth of 283000 and he registered the property to me through sales deeds not through gift, in sales deeds property value is written as 718000 on 30/4/2013. Income notice has come regarding capital gain tax. Is there any way to prove that there is no money transferred in this case and it’s been registered to son by father and if so will it save the capital gain tax?

  32. SHUBHAM AGARWAL says:

    Dear Sir,
    If brother and his spouse gift a immovable property to his sister and his spouse, where stamp duty value is more than 50k. So what are the tax liability to brother, sister, and there spouse? Please guide.

  33. SHUBHAM AGARWAL says:

    Dear sir
    If bother and his spouse want to gift a immovable property to his sister and his spouse which is 8500000 Rs. Where the. Stamp duty value more than 50k. So what are the income tax liability to brother, sister and their spouse.?

  34. SHUBHAM AGARWAL says:

    Dear sir
    If bother and his spouse want to gift a immovable property to his sister and his spouse which is 8500000 Rs. So what are the income tax liability to brother, sister and their spouse.?

  35. Subhankar Neogi says:

    If i gift 13 Lac to my wife and she purchased a property from it . is it taxable ? how she treat the property in her balance sheet?

  36. Arvind Ahluwalia says:

    My maternal grandfather (Nana Ji) had gifted his shop to my wife in Aug 2014 and at that time market value of the shop was 15.59 lakhs. He paid stamp duty also on 15.59 lakhs. Here I also want to clear that my wife is full time home maker and has no extra source of income.

    1: Does my wife have to pay income tax on this gifted shop( i.e 15.59 lakhs)?

    According to my CA, this property is tax free because as per IT rules this comes under ” Lineal ascendant of spouse” category, under section 56 income tax act1961 which is tax free.

    But surprisingly 4 days before I have received notice from It office and today I have a meeting with IT Officer and they clearly mentioned that they can not consider my maternal grandfather (nanaji) and my wife in Lineal Ascendant of spouse category ( for the shop gifted by my nanaji to my wife). They are asking for law number/Income Tax rule no. for the same in which it may be clearly mention that gift received from husband’s nanaji is tax free.

    Could you please help me to know the law no/ Income Tax rule no. for the same.

    Looking forward for your help.

  37. Manush says:

    Can My KAKA HUF GIVE GIFT to Me

  38. UTSAV says:

    Sir,

    MY HUF HAS RECEIVED RS. 750000/- AS GIFTS FROM RELATIVES DURING THE F.Y. 2014-15 RELEVANT TO A.Y 2015-16. THERE IS AN INTEREST INCOME OF RS 24500/- ON FDs THAT HAS BEEB MADE OUT OF THESE GIFTS. WHAT IS MY TAX LIABILITY FOR THE A.Y. 2015-16 ? I AM YET TO FILE MY ITR FOR THE A.Y. 2015-16. PLS ADVISE AT YOUR EARLIEST.

    RGDS.

    UTSAV

  39. RAKESH PAREEK says:

    Can I gift Rs 80000 from my salary account to my adult daughters saving account (first account holder herself & second account holder my self) every month to meet out fee of medical & engineering colleges for a period of about 5 years. They deposit this amount in a Recurring account.Please clarify is it as per income tax rules.

    ThankS

    • NIRMAL BOSE says:

      Dear Rakesh

      If you give give gift to your daughter, whatever amount, it is not taxable. After receiving the the gift if your daughter depposit in FD OR RD the interest received from the amount will be taxable on her part if it exeeds 250000 in one year as per the present income tax slab.

    • NIRMAL BOSE says:

      Dear Rakesh

      It is better to have a seperate account in the name of your dayghter and the gift her any amount you like.

  40. RAKESH PAREEK says:

    Respeected sir,
    Can I gift Rs 80000 from my salary account to my adult daughters saving account (first account holder herself & second account holder my self) every month to meet out fee of medical & engineering colleges for a period of about 5 years. They deposit this amount in a Recurring account.Please clarify is it as per income tax rules.

    Thanking you
    RAKESH PAREEK
    RPAREEK1963@GMAIL.COM

  41. B Pradhan says:

    Please guide……….

    Post retirement my husband has transferred money into my account which exceeds Rs. 50,000. I have made investments in FD, Mutual Funds etc. I do not have any other source of income other than from these investments.

    Following are my doubts:

    1) So as I understand, the amount transferred by him into my account will not be taxable in my hands as it is gifted by my spouse.

    Am I right with the interpretation of Law in this regard?

    2) I also want to make sure that this amount will not get clubbed in my husband’s income.

    3) In whose hands will the interest on the investments will be charged to tax? Will it be clubbed in my husband’s income?

    Thank you!

    • SHESHGIRI V JOSHI says:

      DONNER IS HUSBAND DONEE WIFE

      GIFT AMONT IS RS 20 LACKS DONEE WILL DEPOSIT SAME AMOUNT TO BANK

      THE INTEREST EARNED ON FD IS WHETER TAXABEL IN THE HANDS OF DONEE OR THE DONNER

      THE DONNE IS ALREADY ASSESEE TO THE INCOME TAX KINLDY CLARIFY THE ISSUE

    • Ankit Shah says:

      Income will be taxed in the hands of husband (clubbing)

  42. g.p.verma says:

    can i take Rs 1 lakh in cash from my broter. what record i will need to maitain for explanation.

  43. g.p.verma says:

    can i accept rs 1.00 lakh cash gift from my brother. will i get exemption under csection 56(2) of Itax Act

  44. JOLIKA GUPTA says:

    the Naana wants to “gift” to her Daughter’s son.
    can “Naana” gift “nawasa”(daughter’s son)? what is the tax liability in such a condition and who will pay and how much? Naani’s age is around 62 years.

    Kindly reply

  45. Mohit says:

    My son got married in March 15. How much of Amount I can gift him that is tax free ? Can this be transferred to My HUF account, as my son is one of the member ? Who can gift for tax free amount to marrying person and how it can be used for HUF capital raising ?
    Mohit Parikh

  46. Toshi Agarwal says:

    as per Section 56(2)(viia) Does Firm includes LLP as well???/

  47. sharma rk says:

    Naani( mother’s mother) residing in Delhi had purchased a property in the last quarter of the year 2002 for Rs. 1.65000/- rupees.

    She sells that said property on a hihger rates for e.g. Rs.9 lacs today.

    She purchases another property for her own use as she is not having any property for her living purposes in Delhi. So, she purchases another property in Delhi for her own use. she purchases it in Rs. 9 lacs.

    Now, immediately, after purchase of the said property, the Naani wants to “gift” the new purchased property to her Daughter’s son.

    can “Naani” gift a house to his “nawasa”(daughter’s son)? what is the tax liability in such a condition and who will pay and how much? Naani’s age is around 62 years.

    kindly advise.

  48. girish chhabra says:

    if donor is mother and donee is daughter, and she gifts rs20000 pm ie 120000 pa
    is this donation be able to reduce the total taxable income of donor. Eg 600000 pa is mother’s taxable income. will it now be 480000 or same 600000.
    In other words
    Will the tax liability of donor be affected.

  49. variya bhavin says:

    if i give land to my wife as on 15-4-15, SDV is 49000 and further transfer as on 2-6-15 SDV is 49000 all gift is without consideration, what is tax liability on the hand of me.

  50. samar says:

    dear Sir,

    if i have to gift cash in excess of Rs 30,000/- to my wife on monthly basis ,is it exempted from tax ?
    how can I claim the exemption in my tax liability …under which section .

    samar

  51. Dr Ashok Kumar jain says:

    Can nephew ( Bhatiza )gift money
    Tax free

  52. Aakanksha says:

    Father gifts moveable property to his sons & daughters & wife, who will pay I Tax on the income generated by these gifted property.

  53. Jagadish says:

    FATHER GIVEN GIFT OF RS 250000 TO HIS SON’S WIFE, IS IT EXEMTED IN THE HANDS OF SON’S WIFE

  54. MANOJ GALA says:

    can HUF OF GRANDFATHER MAY GIVE GIFT TO THEIR GRAND DAUGHTER
    IS FREE & AND UPTO WHAT AMOUNT
    PLS REPLY

  55. sohan says:

    sir, i gain rs 650000/ during marriage by father in law and his brother( WIFE UNCLE) by bank transfer. is it taxable? how i can save tax? how much i have to pay as a income tax?

  56. narsimha says:

    what will be the income tax or capital gain tax on gift deed (my father in law to my wife)

  57. Dinesh chandra says:

    In case of immovable property two points discussed above (at s.no.iv)still needs clarification please.
    For donee :-
    1) COA will be SDV (whose COA- if it means  the COA of the donor which was in thousands at the time of acquisition and the value today has gone up in lakhs( the SDV is in lakhs)  then what will be  the SDV ?) Pl. clarify it.
    2)what is the purpose of counting of holding period from the date of acquisition by donee. Pl.  Clarify it for the benefit of common man who is not so expert in this field.

  58. Yogesh says:

    Which ITR to fill for HUF Returns & There is no income other than Gift from HUF Karta .
    Where to show this GIFT from Karta on HUF return form.

    Thanks in Anticipation!!

  59. Dinesh chandra says:

    @ Ushaw Garg—–Thanks for the kind reply.

  60. USHA GARG says:

    Dinesh Chandra:
    No capital gain for donor, and no taxability for donee arises since donor is a relative of donee as per Income Tax Act. Thus naatee or damaad will not bear any tax in this case.

  61. Manish Soni says:

    Further in case there is a time gap between date of agreement to purchase the immovable property and the date of registration of immovable property and due to this time gap the SDV of immovable property has increased as on registration date as compared to SDV as on date of agreement then the difference amount will not be taxable in the hands of recipient PROVIDED that at least a part of total consideration has been paid by any mode other than cash on or before the date of agreement.

    E.g. Mr. Arman booked a 2BHK flat in Noida in the year 2009 for INR. 40 Lac and paid INR. 5 Lac as booking amount by way of a/c payee cheque. At that time SDV was INR. 35 Lac.

    Now in 2014 he got possession of flat and got the registry done by paying stamp duty. However SDV at the time of registry was INR. 50Lac.

    In the instant case nothing is taxable in the hands of Arman as he had paid advance money by way of cheque as on the date of agreement.

  62. gopal tulsyan says:

    N R I OR OTHER BLOOD GROUP SHOULD DONATION GIVE US THAN WHAT IS TAX LIABILITIES AMOUNT Rs ABOVE 50000/

  63. s sudarshana says:

    The article is well written informative and a must for a family who should know the tax implication of gift. Intentions are different and rules are a different. One is expected to follow the rules and regulations and ignorance is no excuse.
    Appreciation to the writer of the article!

  64. R S SHAH says:

    Can the administrator or anyone please send the format for calculation of capital gainsetc. on redevelopment in Mumbai. for individual flatowners in a coop society, who gets additional area, free of cost, some compensations and some corpus fund. The flatowner would have purchase the flat more than a decade back. also does he have to get the valuation done of old flat and new flat market value ? indexation etc.

  65. Harish Nakerikanti says:

    Nice Info and Thanks for sharing

  66. Dinesh chandra says:

    What will be the position if mother in law gifts agricultural land to her deceased daughter’s husband (damaad) or to daughter’s children (natee) where the stamp duty value is greater than 50k and COA is of 1986. What is PGBP ?

    • Shraddha says:

      Can I receive cash 150,000 as a gift from my grandfather in law.is this transaction come under exception to gift taxability. I.e. under definition of relative. Plz reply.

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