The gift received by any other nearest
relatives to Taxpayee/Assessee is treated as gift from relatives and accordingly
nothing would be taxable in the hand of Taxpayee on the amount so gifted by
Relatives.
A word of Caution:
Any income arising from the assets transferred (which includes gift also) to Taxpayee/Assessee without adequate consideration is subjected to clubbing provision and is taxable in the hands of the transfer or/and not in the hands of transferee. [Section 64(1)(vi) of the Income Tax Act-1961].
In normal course, where the aggregate value of gift received from non-relative exceeds Rs.50,000/-, the entire amount of gift would be taxable (& not merely an amount in excess of Rs. 50,000/-).
Limit to receive Gift :
Existing provisions to received any Gift under the head of "Income from other Sources" under Clause (vii) of sub-section (2) of section 56, any sum or property received by an individual or HUF for inadequate consideration or without consideration is deemed as income.
Therefore, it is proposed to amend the provisions of section 56 so as to provide that any sum or property received without consideration or inadequate consideration by an HUF from its members would also be excluded from taxation.
Conditions to Exempt Gift Tax :
A word of Caution:
Any income arising from the assets transferred (which includes gift also) to Taxpayee/Assessee without adequate consideration is subjected to clubbing provision and is taxable in the hands of the transfer or/and not in the hands of transferee. [Section 64(1)(vi) of the Income Tax Act-1961].
In normal course, where the aggregate value of gift received from non-relative exceeds Rs.50,000/-, the entire amount of gift would be taxable (& not merely an amount in excess of Rs. 50,000/-).
Limit to receive Gift :
Existing provisions to received any Gift under the head of "Income from other Sources" under Clause (vii) of sub-section (2) of section 56, any sum or property received by an individual or HUF for inadequate consideration or without consideration is deemed as income.
Therefore, it is proposed to amend the provisions of section 56 so as to provide that any sum or property received without consideration or inadequate consideration by an HUF from its members would also be excluded from taxation.
Conditions to Exempt Gift Tax :
- Gift from spouse means wife or husband.
- Gift from brother or sister.
- Brother or sister of the spouse.
- Brother or sister of either of parents either husband or wife.
- Any lineal ascendant or descendant.
- Any lineal ascendant or descendant of the spouse.
- Money or property received by a person on the occasion of his/her marriage.
- Property or money transferred by the way of inheritance of either individual or H.U.F.
- Property or money received in contemplation of the payer.
- Property or money received from the local authority.
- Property or money received from any local university, college, or any other government institute under section 10(23) of the income tax act or section 12AA of the income tax act.
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