Article briefly explains Taxability of Gifts received in the form of Money, Immovable Property and Movable Property.
1. Money :-
If aggregate money received in F.Y. is greater than Rs. 50,000, then entire amount is Taxable.
2. Immovable Property :-
| Particulars | Condition | Taxable Amount |
|---|---|---|
| Without Consideration | If Stamp Duty Value > 50,000 | Entire Stamp Duty Value is taxable |
| With Consideration (lower than Stamp Duty Value) | If (Stamp Duty Value – Consideration) > 50,000
And Stamp Duty Value > 105% of Consideration |
(Stamp Duty Value – Consideration) is taxable. |
*Value per property will be calculated in this case.
3. Movable Property :-
| Particulars | Condition | Taxable Amount |
|---|---|---|
| Without Consideration | If Aggregate Fair Market Value > Rs. 50,000 | Entire Fair Market Value is taxable. |
| With Consideration (lower than Fair Market Value) | If (Aggregate of Fair Market Value – Consideration) > Rs. 50,000 | (Fair Market Value – Consideration) is taxable. |
*Movable Property includes Shares, securities, jewellery, archaeological collections, drawings, paintings, sculptures, any work of art, bullion.
Exclusions from Gifts – Not Taxable :-
√ From any relative
√ On the occasion of marriage
√ Under a will or by way of inheritance
√ In contemplation of death of the donor
√ From any local authority
√ From any fund/university/educational institution/hospital/medical institution referred in section 10(23C)
√ From any trust registered u/s 12A or 12AA
√ From an individual by a trust created for the benefit of relative of the individual.
√ By way of transactions not regarded as transfer u/s 47
