tax rates of gift tax
Following Gifts / Deemed Gifts chargeable to tax in the hands of the receiver of gifts (any person including individual, HUF, firm etc.):
- Cash gift in excess of Rs 50,000/-
- Immovable Property in excess of Rs 50,000 as a gift.
- Immovable property at a consideration which is lesser than Stamp Duty value of Property by more than Rs 50,000.
- Other than immovable Property (i.e. shares, jewellery, paintings, etc.) in excess of Rs 50,000 as a gif.
- Other than immovable Property at a consideration which is lesser than Stamp Duty value of Property by more than Rs 50,000.
- If cash gifts of Rs 2 lakhs or more are received, apart from tax penalty u/s 269ST would attract equivalent to the amount involved. Even cash gifts received from parents on the occasion of marriage would attract above penalty.
- Gifts from relatives, on occasion of marriage, under a will, in contemplation of death by donor, by any trust are not regarded as gifts for purpose of taxation.
- Care to be taken especially at the time of purchase of immovable properties, time of sale of shares as stamp duty value or FMV is to be determined for computation of capital gains.
- FMV of such shares are to be determined using net assets method or based on valuation report.