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Are monetary gifts received from abroad liable to tax?
If you receive monetary gifts from abroad: From Relatives: They are completely exempt from tax. From Non-Relatives: If the total amount of such gifts during the financial year exceeds ₹50,000, the entire amount is taxable as income from other sources. Reference (Section 56(2)(x) of the Income Tax AcRead more
If you receive monetary gifts from abroad:
From Relatives: They are completely exempt from tax.
From Non-Relatives: If the total amount of such gifts during the financial year exceeds ₹50,000, the entire amount is taxable as income from other sources.
Reference (Section 56(2)(x) of the Income Tax Act, 1961):
See lessIf the aggregate value of gift received during the year by an individual or HUFexceeds Rs. 50,000, whether total amount of gift will be charged to tax or only the amount in excess of Rs. 50,000 will be charged to tax?
If you receive gifts (movable property or money) from non-relatives and the total value during the year exceeds ₹50,000, the whole amount is charged to tax under the head “Income from Other Sources.” This provision prevents individuals from circumventing tax by receiving multiple gifts just under thRead more
If you receive gifts (movable property or money) from non-relatives and the total value during the year exceeds ₹50,000, the whole amount is charged to tax under the head “Income from Other Sources.”
This provision prevents individuals from circumventing tax by receiving multiple gifts just under the threshold from non-relatives.
Please refer to seection 56(2)(x) of the Income Tax Act, 1961):
See lessHow are gifts of movable property received by an individual or HUF charged to tax?
As per Section 56(2)(x) of the Income Tax Act, 1961): “Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources,Read more
As per Section 56(2)(x) of the Income Tax Act, 1961):
“Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources, unless it is received from a relative.”
Explanation:
What Are Gifts of Movable Property?
In this context, “movable property” includes assets such as money, shares, jewelry (other than immovable property like land or buildings), and other tangible or intangible items that are not fixed to one location.
Taxability Criteria:
From Relatives:
Gifts received from relatives are exempt from tax, regardless of their value.
From Non-Relatives:
If you receive gifts (whether in the form of money or movable property) from non-relatives and the aggregate value of these gifts during the financial year exceeds ₹50,000, then the entire value of the gift is taxable under the head “Income from Other Sources.”
Threshold Limit:
If the total value of such gifts does not exceed ₹50,000 during the year, they are not taxable.
See lessAre gifts of immovable property received by an individual or HUF charged to tax?
As per Section 56(2)(vii) of the Income Tax Act, 1961): “Where any immovable property is received by an individual or a Hindu Undivided Family (HUF) as a gift without consideration, if the stamp duty value of such property exceeds ₹50,000 and the donor is not a relative as defined under the Act, theRead more
As per Section 56(2)(vii) of the Income Tax Act, 1961):
“Where any immovable property is received by an individual or a Hindu Undivided Family (HUF) as a gift without consideration, if the stamp duty value of such property exceeds ₹50,000 and the donor is not a relative as defined under the Act, then the entire value of such property shall be taxable under the head ‘Income from Other Sources’.”
Summary:
No Tax on Gifts from Relatives:
Immovable property received as a gift from a relative is exempt from tax, regardless of its value.
Tax on Gifts from Non-Relatives:
Immovable property received as a gift from a non-relative is taxable if its stamp duty value exceeds ₹50,000; in such cases, the entire value is treated as income and taxed accordingly.
See lessWould any taxability arise if an immovable property is received for less than its stamp duty value?
Yes, if an immovable property is received for less than its stamp duty value, taxability arises on the basis of the higher stamp duty value as per Section 50C. This means you are required to compute your capital gains—and subsequently pay tax—using the stamp duty value as the full consideration forRead more
Yes, if an immovable property is received for less than its stamp duty value, taxability arises on the basis of the higher stamp duty value as per Section 50C. This means you are required to compute your capital gains—and subsequently pay tax—using the stamp duty value as the full consideration for the property transfer.
As per Section 50C – Valuation of Immovable Property:
See less“Where the consideration for the transfer of an immovable property is less than the value adopted or assessed by the Stamp Valuation Authority, then, for the purposes of computing capital gains, the latter value shall be deemed to be the full value of consideration received or accruing as a result of such transfer.”
Which income is charged to tax under the head “Capital Gains”?
According to Section 48 of the Income Tax Act, 1961, the income chargeable under the head “Capital Gains” is determined as follows: Section 48 – Computation of Capital Gains:“The income chargeable under the head ‘Capital Gains’ shall be the difference between the full value of consideration receivedRead more
According to Section 48 of the Income Tax Act, 1961, the income chargeable under the head “Capital Gains” is determined as follows:
See lessWhat is a capital assets?
As per Section 2(14) of the Income Tax Act, 1961): "Capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include—(a) Stock-in-trade, consumable stores, or raw materials held for the purpose of business;(b) Personal effeRead more
As per Section 2(14) of the Income Tax Act, 1961):
See less