Gift

Whether Gift to Shareholder’s Son is Deemed Dividend?

Income Tax - Issue: Whether gift or amount paid by a closely held company to relative of shareholder will be treated as deemed dividend?  In this article we are going to analyse a situation in which a company has gifted Rs. 50,000/- to one of shareholders’s son and AO has consider the gift as deemed dividend.  PROBLEM: Mr. […]...

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Taxability on Gifts, Rewards & Rewards Given to Sportsperson/Olympic Participants

Income Tax - Taxability on Gifts, Rewards and Rewards Given to Sportsperson/Olympic Participants TAX ON GIFTS IN INDIA: In India, gift is exempted up to Rs. 50,000 and gifts from specific relatives such as parents, spouse and siblings are also exempted from tax. Other than specified before are taxable. Tax on gifts falls under the purview of Income [&...

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Taxability of gifts received from clients as a result of good work

Income Tax - Komal, a renowned fashion designer, is famous across Pune city for designing stylish and elegant ladies wear. She designs suits, dresses, and other clothing & accessories for the middle-to-rich class of society. Once, Namrata, wife of a leading diamond merchant of the city, hired Komal to design a nightgown for a family function. Koma...

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Marriage Gifts And Its Taxation

Income Tax - It is customary in Indian for families to exchange gift at the occasion of marriage. This article deals with tax implications of such gifts received. General Provisions for taxation of Gifts in India Before abolition of the Gift Tax Act in  1998  the donor (giver of the gift) was required to pay gift tax on […]...

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Provision relating to ‘GIFT’ Under Income Tax Act

Income Tax - Income tax act does not specifically define the term gift. The term gift under the act means something that is received without consideration of for inadequate consideration. Section 56 of Income tax Act talks about taxation of gifts. This article will analyse gifts received from different person on different occasion and its tax implicat...

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GST on Gift & perquisites supplied by companies to their employees

Income Tax - Gifts up to a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST. However, gifts of value more than Rs 50,000/- made without consideration are subject to GST, when made in the course or furtherance of business....

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No Addition U/s. 56 for Immovable Property received at less than stamp duty value

Income Tax - The existing provisions of section 56(2)(vii)(b)(ii) provide that where any immovable property is received for a consideration which is less than the stamp duty value of the property by an amount exceeding 50,000, the stamp duty value of such property as exceeds such consideration, shall be chargeable to tax in the hands of the individual...

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ICAI President’s Message – January 2013

Income Tax - Suggestions on Draft Rule 11UA of Income-tax Rules, 1962 Accepted: I am happy to inform you that our suggestions have found favour with the Government, which we had submitted in response to the CBDT’s request on the draft Rule 11UA for determination of fair market value for the purpose of Section 56(2)(viib) of Income-tax Act, 1961. ...

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Priyanka to pay Income Tax on Rs 6 crore and Kasbekar on Rs 4-crore

Income Tax - Actress Priyanka Chopra and photographer Atul Kasbekar will pay income tax on some undisclosed transactions. Priyanka will pay tax on Rs 6 crore of cash transactions and Kasbekar on a Rs 4-crore gift, a senior income-tax official said. Income-tax officials raided them and actress Katrina Kaif on January 24. Katrina did not evade tax, the ...

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Income Tax department asks Shah Rukh Khan to pay tax on villa gifted by Dubai Co

Income Tax - The Income Tax department has issued a notice to Bollywood actor asking him to pay tax on the Rs 17.84 crore villa in the UAE, I-T sources said today. He received the villa as a gift from a Dubai-based company during assessment year 2008-09 ...

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ITAT deletes addition of Gift received by Actor Kushal Tandon from his Father

Kushal Virendra Tandon Vs ACIT (ITAT Mumbai) - As both the financial statement of Shri. Virendra Tandon (Father) for the Assessment Year 2014-15, as well as his admission in the ‘gift deed’, dated July 21, 2013 along with a mention of the source of the gift transaction in question, that is, accumulated savings of the past, as were filed by t...

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HC on adoption of Guideline value to determine value of a property under Gift Tax Act

S.K.R. Viswanathan Vs Gift-Tax Officer (Madras High Court) - The assessee is an individual, the respondent framed an assessment under the Act for the assessment year 1991-92 on the ground that the taxable gift exceeding Rs.12 lakhs has escaped assessment and therefore, notice under Section 16 of the Act was issued on 15.07.1992....

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ITAT accepts 50% of Marriage Gifts as Source of Cash Deposit

Venkatesh Soutoor Tirupati Vs ITO (ITAT Hyderabad) - Venkatesh Soutoor Tirupati Vs ITO (ITAT Hyderabad) As regards the cash withdrawals and the marriage gifts from others and gift from his brother as sources for the balance of cash deposit is concerned, I find that the Assessing Officer has held the ATM withdrawals and also 2/3rd of the gifts at the t...

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No addition for duly supported Cash Gift from Relatives

Sheela Yogi Vs ITO (ITAT Jaipur) - Sheela Yogi Vs ITO (ITAT Jaipur) Once the summons have been issued and these persons have appeared and given their statements before the AO wherein they have confirmed that they have advanced the amount to the assessee towards purchase of the agricultural land and has also disclosed the source of th...

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A Transaction not become Genuine merely for receipt via banking Channel

Shri M.Balakrishna Hegde Vs DCIT (ITAT Bangalore) - Whether AO is correct in considering the gift received by the assessee as unexplained gift and made addition u/s 68 when the Gift was received through banking channels?...

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Fee structure for Depository Participants (DP) operating in GIFT-IFSC

Circular No. 286/IFSCA/CMD-DMIIT/DP/2021/1 - (27/07/2021) - The depository participants have been permitted to operate in GIFT-IFSC in terms of the applicable provisions under SEBI (International Financial Services Centres) Guidelines, 2015, as amended from time to time....

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CAs cannot do Valuation of unquoted equity shares under DCF method

Notification No. 23/2018-Income Tax [S.O. 2087(E)] - (24/05/2018) - Amendment in Rule 11U and 11UA omitting reference to the term accountant, thereby permitting only merchant bankers to determine the FMV of unquoted equity shares as per the Discounted Free Cash Flow Method ...

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Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2009

Notification No. G.S.R. 349(E) - (22/05/2009) - In exercise of the powers conferred by sub-section (1) and clause (a) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in consultation with the Reserve Bank, the Central Government, having considered it necessary in the public interest, hereby makes the ...

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Recent Posts in "Gift"

Whether Gift to Shareholder’s Son is Deemed Dividend?

Issue: Whether gift or amount paid by a closely held company to relative of shareholder will be treated as deemed dividend?  In this article we are going to analyse a situation in which a company has gifted Rs. 50,000/- to one of shareholders’s son and AO has consider the gift as deemed dividend.  PROBLEM: Mr. […]...

Read More
Posted Under: Income Tax |

Taxability on Gifts, Rewards & Rewards Given to Sportsperson/Olympic Participants

Taxability on Gifts, Rewards and Rewards Given to Sportsperson/Olympic Participants TAX ON GIFTS IN INDIA: In India, gift is exempted up to Rs. 50,000 and gifts from specific relatives such as parents, spouse and siblings are also exempted from tax. Other than specified before are taxable. Tax on gifts falls under the purview of Income [&...

Read More
Posted Under: Income Tax |

ITAT deletes addition of Gift received by Actor Kushal Tandon from his Father

Kushal Virendra Tandon Vs ACIT (ITAT Mumbai)

As both the financial statement of Shri. Virendra Tandon (Father) for the Assessment Year 2014-15, as well as his admission in the ‘gift deed’, dated July 21, 2013 along with a mention of the source of the gift transaction in question, that is, accumulated savings of the past, as were filed by the assesse with the A.O in the course of...

Read More

HC on adoption of Guideline value to determine value of a property under Gift Tax Act

S.K.R. Viswanathan Vs Gift-Tax Officer (Madras High Court)

The assessee is an individual, the respondent framed an assessment under the Act for the assessment year 1991-92 on the ground that the taxable gift exceeding Rs.12 lakhs has escaped assessment and therefore, notice under Section 16 of the Act was issued on 15.07.1992....

Read More

Taxability of gifts received from clients as a result of good work

Komal, a renowned fashion designer, is famous across Pune city for designing stylish and elegant ladies wear. She designs suits, dresses, and other clothing & accessories for the middle-to-rich class of society. Once, Namrata, wife of a leading diamond merchant of the city, hired Komal to design a nightgown for a family function. Koma...

Read More
Posted Under: Income Tax |

Marriage Gifts And Its Taxation

It is customary in Indian for families to exchange gift at the occasion of marriage. This article deals with tax implications of such gifts received. General Provisions for taxation of Gifts in India Before abolition of the Gift Tax Act in  1998  the donor (giver of the gift) was required to pay gift tax on […]...

Read More
Posted Under: Income Tax |

Fee structure for Depository Participants (DP) operating in GIFT-IFSC

Circular No. 286/IFSCA/CMD-DMIIT/DP/2021/1 27/07/2021

The depository participants have been permitted to operate in GIFT-IFSC in terms of the applicable provisions under SEBI (International Financial Services Centres) Guidelines, 2015, as amended from time to time....

Read More

Provision relating to ‘GIFT’ Under Income Tax Act

Income tax act does not specifically define the term gift. The term gift under the act means something that is received without consideration of for inadequate consideration. Section 56 of Income tax Act talks about taxation of gifts. This article will analyse gifts received from different person on different occasion and its tax implicat...

Read More
Posted Under: Income Tax |

Taxation of Gifts received in Cash or Kind

Gifts are usually capital receipts by nature. The Income Tax Act, 1961 (‘Act’) which is levies tax on incomes, that is revenue receipts, carves out certain exceptions and levies tax on capital receipts as well. Gifts are one such receipt. The Act defines gifts as any asset received without consideration like money or money’s worth (...

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Posted Under: Income Tax |

Gift given by HUF to its Member is Considered as Income of Member?

We all know that Gift Tax Act which was introduced from 1st April, 1958 in our country as direct tax, which was repealed from 1st October, 1998. Any person receives Gift from any other person, would be consider as income of the recipient as per section 56(2)(x) with certain exemptions. Section 56(2)(x) was inserted by […]...

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Posted Under: Income Tax |

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