Thursday, July 17, 2014

Direct Taxation: GIFT Tax




Now gift received during the Previous Year shall be included in the income if the aggregate of the gifts received exceeds Rs.50,000.

However, the following gifts are not included in taxable income, viz.
(a)  from any relative; or
(b)  on the occasion of the marriage of the individual; or
(c)  under a will or by way of inheritance; or
(d)  in contemplation of death of the payer; or
(e)  from any local authority as defined in the Explanation to clause (20) of section 10; or
(f)  from  any  fund  or  foundation  or  university  or  other  educational  institution  or  hospital  or  other medical institution or any trust or institution referred to in Sub-section (23C) of Section 10; or
(g)  from any trust or institution registered under Section 12AA; or
(h)   received money or any property by an HUF from its members.

 For these purposes of this clause, “relative” means—
(i)  spouse of the individual;
(ii)  brother or sister of the individual;
(iii)  brother or sister of the spouse of the individual;
(iv)  brother or sister of either of the parents of the individual;
(v)  any lineal ascendant or descendant of the individual;
(vi)  any lineal ascendant or descendant of the spouse of the individual;
(vii)  spouse of the person referred to in clauses (ii) to (vi).
Gifts from relatives, although exempt from tax, in respect of income earned from such a gift, provisions relating to clubbing of income apply in certain cases e.g. gift received from spouse and father-in-law.   





0 comments:

Post a Comment

Copyright © 2015 Accounting & Taxation All Right Reserved
Subscribe by Email Get Free Updates
Don't Forget To Join US Our Community
×
blogger