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Up to when we can expect the new Income tax forms for FY 2019-20.
Date Posted 26-Apr-2020
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In case of gift of prescribed immovable property at less than its stamp duty value, if the difference between the aggregate stamp duty value and the actual consideration charged is more than higher of Rs. 50000 or 5% of actual consideration charged. Then the total difference between stamp duty value & actual consideration would be chargeable to tax.
Here the limit of 50000 is just to determine chargeability, it’s not a deduction, if the stamp duty value of gifted immovable property is Rs. 25 lakh and the actual consideration charged is Rs. 20 lakh and the calculation of chargeable amount would be done as follows: -
Difference between stamp duty value & actual consideration = (25-20 )= 5 lakh
The 5% of actual consideration = 20*5% = 1 lahk
The higher of 50000 or 1 lakh = 1 lakh
Since the difference between stamp duty value & actual consideration is more than higher of 50000 or 1 lakh, the entire difference of 5 lakh is chargeable to tax as other income under the head income from other sources.
Date Posted 29-Dec-2019
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A Gift of immovable property at less than its stamp duty value is chargeable to tax if following conditions are satisfied: -
a. The immovable property should be a prescribed asset. The list of Gifted Prescribed immovable property for tax chargeability consists of land or building or both.
b. The immovable property should fall in definition of capital asset as per section 2(14) of income tax act like it should not be an agricultural land.
c. The prescribed movable asset should be received by an Individual or HUF.
d. The prescribed movable asset should be received at a consideration less than its stamp duty value.
e. The difference between the aggregate stamp duty value and the actual consideration charged is more than higher of Rs. 50000 or 5% of actual consideration charged.
f. Gift is not received from any exempted list of person or occasion.
Date Posted 29-Dec-2019
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In the following situations, even any prescribed immovable property received by Individual or HUF without consideration or at less than its stamp duty value is not chargeable to tax: -
1. Gift of any immovable property received by an Individual from the person covered in the definition of “Relativeâ€.
2. Gift of any immovable property received by HUF from its members.
3. Gift of any immovable property received by an Individual from any person on occasion of his /her marriage.
4. Gift of any immovable property received by an Individual or HUF by way of inheritance or by will.
5. Gift of any immovable property received from any fund, foundation, hospital, educational institution, university, trust / Institution, registered under section 10(23C),
6. Gift of any immovable property received from a local authority.
7. Gift of any immovable property received in contemplation of death of payer or donor.
8. Gift of any immovable property received from a trust or institution registered u/s 12AA.
Date Posted 29-Dec-2019
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In case of gift of prescribed immovable property, if the aggregate stamp duty value in the hands of receiver exceeds Rs. 50000, the total stamp duty value of all the gifted prescribed immovable properties are chargeable to tax.
Here the limit of 50000 is just to determine chargeability, it’s not a deduction, if the stamp duty value of gift exceeds Rs. 50000, then the entire stamp duty value of gift would be chargeable.
Date Posted 29-Dec-2019
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A Gift of immovable property is chargeable to tax if following conditions are satisfied: -
vi. The immovable property should be a prescribed asset. The list of Gifted Prescribed immovable property for tax chargeability consists of land or building or both.
vii. The immovable property should fall in definition of capital asset as per section 2(14) of income tax act like it should not be a agricultural land.
viii. The prescribed movable asset should be received by an Individual or HUF.
ix. The prescribed movable asset should be received without any consideration.
x. The aggregate stamp duty value of those gifted prescribed immovable properties received by an Individual or HUF in a financial year exceeds Rs. 50000.
xi. Gift is not received from any exempted list of person or occasion.
Date Posted 29-Dec-2019
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In case of gift of prescribed movable asset, if the aggregate fair market value in the hands of receiver exceeds Rs. 50000 by the actual value charged, the total fair market value minus the actual consideration charged of all the gifted prescribed asset is chargeable to tax.
Here the limit of 50000 is just to determine chargeability, it’s not a deduction, if the fair market value of gift is Rs. 180000 and the actual price charged is Rs.100000, here the fair market value exceeds from actual value by Rs. 80000, then the value of gift would be entire Rs. 80000.
Date Posted 29-Dec-2019
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A Gift of movable asset at concessional price is chargeable to tax if following conditions are satisfied: -
i. The Movable asset should be a prescribed asset. The list of Gifted Prescribed Asset for tax chargeability consists of shares or securities, jewellery, paintings, drawings, archaeological collections, sculptures or any other work of art and bullion being capital asset of the taxpayer.
ii. The prescribed movable asset should be received by an Individual or HUF.
iii. The prescribed movable asset should be received at less than its fair market value.
iv. The aggregate fair market value of those gifted prescribed assets should exceed Rs. 50000 by actual value charged to an Individual or HUF in a financial year.
v. Gift is not received from any exempted list of person or occasion.
Date Posted 29-Dec-2019
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In the following situations, even any prescribed movable asset received by Individual or HUF without consideration or at less than fair market value are not chargeable to tax: -
1. Gift of any movable asset received by an Individual from the person covered in the definition of “Relativeâ€.
2. Gift of any movable asset received by HUF from its members.
3. Gift of any movable asset received by an Individual from any person on occasion of his /her marriage.
4. Gift of any movable asset received by an Individual or HUF by way of inheritance or by will.
5. Gift of any movable asset received from any fund, foundation, hospital, educational institution, university, trust / Institution, registered under section 10(23C),
6. Gift of any movable asset received from a local authority.
7. Gift of any movable asset received in contemplation of death of payer or donor.
8. Gift of any movable asset received from a trust or institution registered u/s 12AA.
Date Posted 29-Dec-2019
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No, gift of car is not chargeable to tax, as car is not the part of prescribed movable asset.
Date Posted 29-Dec-2019
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In case of gift of prescribed movable asset, if the aggregate fair market value in the hands of receiver exceeds Rs. 50000, the total fair market value of all the gifted prescribed asset is chargeable to tax.
Here the limit of 50000 is just to determine chargeability, it’s not a deduction, if the fair market value of gift exceeds Rs. 50000, then the entire fair market value of gift would be chargeable.
Date Posted 29-Dec-2019
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A Gift of movable asset is chargeable to tax if following conditions satisfies: -
a. The Movable asset should be a prescribed asset. The list of Gifted Prescribed Asset for tax chargeability consists of shares or securities, jewellery, paintings, drawings, archaeological collections, sculptures or any other work of art and bullion being capital asset of the taxpayer.
b. The prescribed movable asset should be received by an Individual or HUF.
c. The prescribed movable asset should be received with-out any consideration.
d. The aggregate fair market value of those gifted prescribed assets received by an Individual or HUF in a financial year exceeds Rs. 50000.
e. Gift is not received from any exempted list of person or occasion.
Date Posted 29-Dec-2019
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Following type of gits are chargeable to tax if received by an individual or HUF subject to certain conditions: -
1. Monetary Gifts: -
Any sum of money whether by way of cash, cheque, bank draft or any other banking transfer modes, received without consideration is called the “Monetary Gifts.â€
2. Gift of Movable Asset: -
Any prescribed movable asset received by an individual or HUF without consideration is called “Gift of Movable Asset.â€
Gifted Prescribed Asset for tax chargeability consists of shares or securities, jewellery, paintings, drawings, archaeological collections, sculptures or any other work of art and bullion being capital asset of the taxpayer.
3. Gift of Movable Asset at Concessional Price: -
Any prescribed movable asset received by an individual or HUF with consideration less than its market value is called “Gift of Movable Asset at concessional price.â€
4. Gift of Immovable property: -
Any immovable property received by an individual or HUF without consideration is called “Gift of immovable property.â€
5. Gift of Immovable property at Concessional Price: -
Any immovable property received by an individual or HUF with consideration less than its stamp duty value i.e. derived by multiplying area with the Govt prescribed rates for stamp duty calculation is called “Gift of immovable property less than its stamp duty value.â€
Date Posted 29-Dec-2019
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No, only gift received from relatives are exempt from tax, since employees, friends or employer do not fall in the definition of relative, monetary gift received will be chargeable to tax.
Date Posted 29-Dec-2019
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If an Individual or HUF receives monetary gifts aggregate value of which in a financial year exceeds Rs. 50000, these monetary gifts will be chargeable to tax. “Aggregate value†here means total sum of money received as gift from all the eligible persons during a financial year.
In case the aggregate value exceeds 50000, the entire amount is taxable.
Date Posted 29-Dec-2019
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No, the only occasion of marriage is the prescribed occasion on which any monetary or non-monetary gifts by any person to an Individual is exempt to tax. Any gift on any other occasion like birthday, anniversary, retirement etc. are chargeable to tax.
Date Posted 29-Dec-2019
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No, if the relative falls in the prescribed list, there is no limit of amount which can gifted to an individual without tax.
Date Posted 29-Dec-2019
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Following persons are covered in the definition of relative from whom any monetary gifts / gift of movable asset / gift of immovable property to an Individual is exempt from tax: -
1. Spouse of an Individual
2. Brother or Sister of an Individual
3. Parents of an Individual including any lineal ascendant or descendent of an Individual
4. Parents of the spouse of an individual including any lineal ascendant or descendent of the spouse of an Individual
5. Brother or Sister of the spouse of an Individual
6. Brother or Sister of either of the parents of the Individual
7. Spouse of any the person covered from point 2 to 6
Date Posted 29-Dec-2019
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In the following situations, any sum of gifted money received by Individual or HUF are not chargeable to tax: -
1. Any sum of money received by an Individual from the person covered in the definition of “Relativeâ€.
2. Any sum of money received by HUF from its members.
3. Any monetary gifts received by an Individual from any person on occasion of his /her marriage.
4. Any monetary gifts received by an Individual or HUF by way of inheritance or by will.
5. Any share of money received due to business re-organization of a co-operative bank.
6. Any money received from a trust / Institution, registered under section 12AA.
7. Any money received from a local authority.
8. Any money received in contemplation of death of payer or donor.
9. Any share of money received due to demerger or amalgamation of a Company.
Date Posted 29-Dec-2019
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Yes, any sum of money received by a Resident Individual or HUF in India from any person (whether resident or non-resident) other than exempted list, will be chargeable to tax provided his aggregate value of gifts in a financial year from all eligible persons exceeds Rs. 50000.
Date Posted 29-Dec-2019
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Yes, w.e.f. 05th July 2019, any sum of money by an any person Resident in India to a Non-Resident person or a foreign company is chargeable as monetary gift as income from other sources. That will be treated as income deemed to accrue or arise in India.
Date Posted 29-Dec-2019
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Monetary gifts received by an Individual or HUF is exempt only if the aggregate amount of gifted money in a financial year does not exceed Rs. 50000.
But if it exceeds Rs. 50000, there is no exemption and the full amount is chargeable to tax.
For example, if Ram receives Rs. 90000 from his friend in a year, then the full amount of Rs. 90000 will be chargeable as other income of Ram.
Date Posted 29-Dec-2019
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Any gifts, whether monetary or non-monetary which becomes chargeable due to crossing threshold & other conditions, are added as other income of the assessee under the head “income from other sourcesâ€, and are added to other taxable income of the assessee and normal tax rate as per the applicable slabs will apply to the gift income as well.
Date Posted 29-Dec-2019
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Any gifts, whether monetary or non-monetary which becomes chargeable to tax because of its threshold and other conditions, it will be charged to income tax as other income under the “head from other sources.â€
Date Posted 29-Dec-2019
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