Cash gifts are taxable under the head “Income from other sources”, if the aggregate of such gifts from non-relatives exceeds Rs.50,000 in a year. However, gifts received on the occasion of marriage, gifts received under a will or by way of inheritance or in contemplation of death of the payer etc. are not taxable.
It is proposed to bring gifts-in-kind, whose value exceeds Rs.50,000, also within the purview of section 56 with effect from 1st October, 2009. Accordingly, it has been provided that the value of the property received without consideration or for inadequate consideration, would be included in the computation of the total income of the recipient.
If an immovable property is received without consideration, the stamp duty value of such property would be taxed as the income of the recipient if it exceeds Rs.50,000. In case the immovable property is received for inadequate consideration, and the difference between the stamp duty value and such consideration exceeds Rs.50,000, such difference would be taxed as the income of the recipient.
If movable property is received without consideration, the aggregate fair market value of such property on the date of receipt would be taxed as the income of the recipient if it exceeds Rs.50,000. In case movable property is received for inadequate consideration, and the difference between the aggregate fair market value and such consideration exceeds Rs.50,000, such difference would be taxed as the income of the recipient.
Therefore, the income-tax net has been widened to cover gifts-in-kind in addition to cash gifts.
No comments:
Post a Comment