What is the tax treatment of gift?

Any sum of money (i.e., generally known as gift) received by an individual/HUF without adequate consideration is charged to tax, if the following conditions are satisfied :
(i)The sum of money is received by an individual or HUF on or after 1-10-2009.
(ii)Such sum of money is received without consideration.
(iii)The aggregate value of such sum received during aforesaid period exceeds Rs. 50,000.
Nothing contained in the aforesaid provisions will apply in the following cases :
• Money received from relatives (see note given below).
• Money received by an HUF from its members.
• Money received on occasion of the marriage of the individual.
• Money received under Will/ by way of inheritance.
• Money received in contemplation of death of the payer or donor.
• Money received from a local authority.
• Money received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10(23C).
• Money received from a trust or institution registered under section 12AA.
Note : Relatives for this purpose means:
(a)  Spouse of the individual;
(b)  Brother or sister of the individual; (c)  Brother or sister of the spouse of the individual;
(d)  Brother or sister of either of the parents of the individual; (e)  Any lineal ascendant or descendent of the individual;
(f)  Any lineal ascendant or descendent of the spouse of the individual;
(g) Spouse of the person refered to in (b) to (f)
visit www.papertax.in and talk to your advisor for quick assistance on any query regarding gift tax
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