Gift amounts over Rs 50,000

Dec 10 2013, 10:14 IST
Comments 0
SummaryYou probably received plenty of gifts on Deepawali and are looking forward to more at Christmas. The taxability of gifts is perhaps the last thing

provisions of the Act, but a gift received by an uncle from his nephew is not covered under the exceptions. In the case of a HUF, a relative means any member of the HUF. A gift received by a HUF from its members is fully exempt from tax.

Gifts received by a partnership firm or a privately held company in the form of shares of a privately held company have also been brought under the ambit of taxation. It is taxable if the aggregate fair market value of shares exceeds R50,000. This could be relevant in case of your partnership firms or private companies. An individual receiving taxable gifts is required to offer these gifts to tax and disclose them in the income tax return under the head ‘income from other sources’.

Nilesh Mody

The writer is executive director, Tax & Regulatory Services, PwC India

Single Page Format
Ads by Google

More from FE Special

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...