Tax on Gift

Gift Tax or Tax on Gift

Income Tax - Gifts are a way of showing  affection towards one another in today’s busy life. Specially in a  country  like India which has a diversified culture  Gifts are exchanged on numerous occasions  such as  Diwali, Raksha  Bandhan, Christmas,  Birthdays, Marriages, etc.  by Friends  and  Relatives  while for some people giving Gif...

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Taxability of gifts received by an individual

Income Tax - In this article, we will emphasis on the applicability of income tax laws on the gifts (movable or immovable) received by an individual from any person....

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Tax on Monthly or Lump sum Alimony Money post Divorce

Income Tax - Lump Sum Settlement Money received at time of Divorce or Monthly Alimony Money received is Taxable in Income Tax Law? A divorce is the legal termination of a marriage by a court in a legal proceeding, requiring a petition or complaint for divorce (or dissolution in some states) by one party. There are two types […]...

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Taxability of Gifts In India

Income Tax - GIFT TAX: The tax levied on the gifts that you have received in money or its worth and which is over and above a certain set limit by the Indian law is known as gift tax. Income tax on gifts helps regulate the gives which is given to you by a person who is not a close relative as per the definition of Income Tax Law of India....

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Tax Implications on Giving or Receiving Gifts in India

Income Tax - Want to gift a property or life time savings to your loved ones? Or have you received a car as a gift on your birthday? Are you worried about the cash gifts received on your wedding? Enjoy giving or receiving gifts guilt-free once you are mindful of the Gifting provisions in India....

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Ancestral family property can be ‘gifted’ away : Bombay HC

Income Tax - he Bombay High Court ruled on Wednesday that no part of an ancestral family property can be ‘gifted’ away. The court in a landmark order while resolving the dispute over a 69-year-old gift deed declared as void the document dating back to 1941, which said that Miraj resident Mallapa had gifted a portion of his ancestral property to hi...

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Income Tax department filed appeal in ITAT against Mayawati demanding tax of 10 crore

Income Tax - In fresh trouble for Uttar Pradesh Chief Minister Mayawati, the Income Tax Department has filed two appeals in the Income Tax Appellate Tribunal (ITAT) demanding additional tax of about Rs 10 crore for her income for the financial years 2005-2006 and 2006-2007. The income includes gifts received by BSP supremo Mayawati from her party work...

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Tax cannot be levied on Gift Received From Brother-In-Law

DCIT Vs Shri Arvind N. Nopany (ITAT Ahmedabad) - Once the identity, creditworthiness and genuineness of the transaction has been proved, gift received from the brother-in-law is exempted in terms of provisions of section 56....

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Addition for Gift justified on failure to substantiate claim of gift received

Shri. Vicky Jethani Vs ITO (ITAT Jaipur) - Shri Vicky Jethani Vs ITO (ITAT Jaipur) We note that the assessee has claimed the gift of Rs. 8,00,000/- received from Smt. Poonaj Kanjani stated to be the Aunt of the assessee and non-resident Indian based at UAE. In support of the claim, the assessee has furnished the Bank Certificate of Bank of B...

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Addition justified for huge gifts on failure to prove genuineness

Kamlesh Parwani Vs Income-Tax Officer (ITAT Mumbai) - The captioned appeal by assessee for Assessment Year [AY] 2005-06 contest the order of Ld. Commissioner of Income-Tax (Appeals)-18 [CIT(A)], Mumbai, Appeal No.CIT(A)-18/T-62/ITO 19(3) (2)/10-11 dated 14/01/2013 qua confirmation of certain addition on account of cash credit u/s 68 for Rs.4 Lacs....

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ITAT explains Meaning of term “relative” in context of HUF

Subodh Gupta (HUF) Vs Pr CIT (ITAT Delhi) - While hearing the case of Subodh Gupta vs Commissioner of Income Tax (CIT), Delhi bench of Income Tax Appellate Tribunal (ITAT) recently held that gift received by Hindu Undivided Family (HUF) from the mother of Karta would attract Income Tax. ...

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Mere instance of reduction in shares of profit of a partner resulting in increase in share of profit of another by itself will not constitute a ‘gift’

Commissioner Of Gift Tax Vs. Smt. Bindu Joseph (Kerala High Court) - A division bench of the Kerala High Court recently held that a mere reduction in the shares of one partner, resulting in proportionate increase of shares of another partner would constitute a gift for the purpose of taxation under Section 4 (1) (a) of the Income Tax Act. ...

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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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Recent Posts in "Tax on Gift"

Gift Tax or Tax on Gift

Gifts are a way of showing  affection towards one another in today’s busy life. Specially in a  country  like India which has a diversified culture  Gifts are exchanged on numerous occasions  such as  Diwali, Raksha  Bandhan, Christmas,  Birthdays, Marriages, etc.  by Friends  and  Relatives  while for some people giving Gif...

Read More
Posted Under: Income Tax |

Taxability of gifts received by an individual

In this article, we will emphasis on the applicability of income tax laws on the gifts (movable or immovable) received by an individual from any person....

Read More
Posted Under: Income Tax |

Tax on Monthly or Lump sum Alimony Money post Divorce

Lump Sum Settlement Money received at time of Divorce or Monthly Alimony Money received is Taxable in Income Tax Law? A divorce is the legal termination of a marriage by a court in a legal proceeding, requiring a petition or complaint for divorce (or dissolution in some states) by one party. There are two types […]...

Read More
Posted Under: Income Tax |

Tax cannot be levied on Gift Received From Brother-In-Law

DCIT Vs Shri Arvind N. Nopany (ITAT Ahmedabad)

Once the identity, creditworthiness and genuineness of the transaction has been proved, gift received from the brother-in-law is exempted in terms of provisions of section 56....

Read More

Taxability of Gifts In India

GIFT TAX: The tax levied on the gifts that you have received in money or its worth and which is over and above a certain set limit by the Indian law is known as gift tax. Income tax on gifts helps regulate the gives which is given to you by a person who is not a close relative as per the definition of Income Tax Law of India....

Read More
Posted Under: Income Tax |

Addition for Gift justified on failure to substantiate claim of gift received

Shri. Vicky Jethani Vs ITO (ITAT Jaipur)

Shri Vicky Jethani Vs ITO (ITAT Jaipur) We note that the assessee has claimed the gift of Rs. 8,00,000/- received from Smt. Poonaj Kanjani stated to be the Aunt of the assessee and non-resident Indian based at UAE. In support of the claim, the assessee has furnished the Bank Certificate of Bank of Baroda regarding […]...

Read More

Tax Implications on Giving or Receiving Gifts in India

Want to gift a property or life time savings to your loved ones? Or have you received a car as a gift on your birthday? Are you worried about the cash gifts received on your wedding? Enjoy giving or receiving gifts guilt-free once you are mindful of the Gifting provisions in India....

Read More
Posted Under: Income Tax |

Section 56 – Taxation of gift received

As per income tax act gifts received are taxable in the hands of recipient under the head Income From Other Sources and there is no taxation for the donor. Here gift means any sum of money, Moveable property or immovable property which received without consideration or inadequate consideration....

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Posted Under: Income Tax |

FAQ / Performa of gift deed, List of Relatives for Tax free Gift

Article contains FAQ on Gift, ,list of relatives from whom an individual can receive the gifts without any income tax liability and also giving below Performa of gift deed....

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Posted Under: Income Tax | ,

S.56 pertaining to gifts, deemed gifts / under-valuations

It is the considered view of the Government that in the materialistic world in which we are living, gifts are not possible from non-relatives. In the past, frequently claims were successfully made  by individuals about receipt of  huge amounts as gifts from other individuals even though the donor and the donee were not related to each o...

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Posted Under: Income Tax | ,

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