Taxability of Gift
Gift received by any person shall be taxable and the gifts shall be divided into 3 Parts
1. Gifts of the sum of money
2. Gifts of any property other than immovable property
3. Gift of Immovable Property
1. Gifts of the sum of money
If any person has received any sum of money from one or more persons without consideration and the aggregate value of all such gifts received during the year exceeds fifty thousand rupees, the whole of the aggregate value of such sum shall be taxable under the head of Other Sources but in case of aggregate value is less than 50000 entire amount shall be exempt from Income Tax.
2. Gifts of any property other than immovable property
If any person has received a gift other than an immovable property without consideration and the aggregate fair market value of such gift received during the particular year exceeds fifty thousand rupees, it will be taxable under the head other sources but if the aggregate value is less than 50000 it will be exempt from income tax.
3. Gifts of Immovable Property
If any taxpayer has received any immovable property without consideration it will be exempt if stamp duty value is less or up to 50000 but if stamp value exceeds fifty thousand entire stamp duty value shall be taxable under the head other sources.
In the following case, Gift is exempt
- If gift received under the will/ inheritance it will exempt from Income tax
- If gift received on the occasion of his/ her marriage
- In contemplation of death of the payer or donor
- From any local authority or charitable hospital or charitable educational Institution or charitable trust or other similar organization.
- If any person received gifts from his/ her relative, it will exempt in the following cases
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