Tax is also to be paid on gifts received on Diwali, know what is the mathematics of tax on gifts
Highlights
- Give details of gift value more than Rs 50 in income tax return form
- There are some gifts which do not attract any tax.
- Gifts received from anyone other than relatives are taxable only if
Diwali Preparations are going on in full swing on all sides. The tradition of giving and receiving gifts in Diwali is very old. On this occasion, gifts are also given to employees in private companies and government departments. You too must be planning to give gifts to your friends and relatives. Did you know that not all gift gifts are tax free? Gift transactions are also taxed. Do you know what are the tax rules on gift transactions? If not then we are giving you complete information.
What is considered a gift?
- Money received by way of cash, check or bank draft
- Immovable property like house, land which can neither be transferred nor destroyed.
- Jewellery, gold, artwork etc.
No tax has to be paid on gifts received from them
- spouse
- siblings
- spouse’s siblings
- Parents
- Parents-in-law
On which gift will you have to pay tax?
- If you receive a gift from a non-relative within a financial year up to Rs 50,000, then it is exempt from income tax. But if more than this amount i.e. 51 thousand or more is received as gift in a financial year, then income tax will have to be paid on the whole. How are gifts taxed?
- If you gift land or house to your relative or any person, then income tax will have to be paid on it according to the stamp duty value of the property. If the stamp duty value of the property exceeds Rs 50,000, then income tax will have to be paid on it.
- If jewellery, paintings, drawings, shares, archaeological collections, gold and silver etc. are received as gifts in a financial year and its market value exceeds Rs 50,000, then tax will have to be paid.
Up to 200% fine for hiding information
If you have received gifts in the form of cash or any other immovable property from your relatives in excess of Rs 50,000, then it is necessary to give this information in the return form while filing income tax. If the information is not given, then it is revealed in the investigation of Income Tax, then the Income Tax Officer can impose a penalty of up to 200% on the amount received. Therefore, if movable, immovable property or cash value exceeds Rs 50 has been received in a financial year, then give this information in the income tax return form and pay the tax. However, gifts received by the bride or groom during the course of marriage are outside the purview of tax. Whether they have met a relative or a non.
gift deed is a good way
What is Gift Deed: Gift deed is a type of document, which is used at the time of transaction of a gift in the form of cash or kind. Whereas, gift is the transfer of any movable or immovable property of his own free will. The person receiving the gift does not pay the cost of the gift to the person giving the gift. According to experts, gifts such as cash, cheque, property, jewelery etc. received may also be taxable. Through gift deed, you can save tax by giving expensive gifts like jewellery, property or cash amount to your relatives. This can be used by your father in lieu of giving you cash.
Latest Business News
function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}
window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});
,
