You have to pay the tax for the gifts received, if it is from the non-relatives. There is no tax if the gift is given by the relative. The following section will explain the clear meaning of relatives in the Income Tax perception. Also there is no tax if the gifts are in any kind other than cash. There is a change in this provision, this article will explain that in detail. If you have any doubts please post it in the comments section. Subscribe to our future articles here.
Also Read:
Who are relatives under Gift Tax Act?
The following are the relatives under gift tax act.
- Your spouse;
- Your brothers and sisters and their spouses;
- Your spouse’s brothers and sisters and their spouses;
- Brother and sister of your parents and their spouses;
- Any lineal ascendant (parents, grandparents, children, grandchildren) or descendants (children, grandchildren);
- Any lineal ascendant (parents, grandparents, children, grandchildren) or descendant of your spouse (children, grandchildren)
Tax on Non-Cash Gifts
- If you are receiving the gifts more than Rs.50000 in a financial year from a non-relative person, you have to show that in the IT returns and pay the tax.
- But, the gift is in the form of shares, gadgets, automobiles, jewelry, valuable artifacts or even property valued at over Rs 50,000 as gifts from non-relatives, will have to start paying tax from October 1, 2009.
- This provision was not there prior to October 1, 2009. If you are receiving any valuable gifts, you have to show that in the IT returns to pay the tax.
Summary
It is new provision added by the Central Board of Direct Taxes (CBDT) authority. This act will reduce the misuse of tax exemption on gifts such as valuable things. Thank you for reading this article. If you have any doubts, post it in the comments section
Subscribe to our future articles here.
December 2, 2009 at 12:05 am
Keep posting stuff like this i really like it.
December 2, 2009 at 7:25 pm
Thank you for the comments.
Thanks,
Krishna
December 7, 2009 at 3:58 am
My mother has sold a flat in Delhi & got 5 lacs from that. can she support me by paying 5 lacs via cheque to part pay my housing loan in bangalore?
Will there be any tax liability for me or for my mother??
January 12, 2010 at 4:20 am
Hi,
My father is an income tax payee. Can he reduce his tax burden by gifting money to mother ? Mother is not a tax payee. How much amount can he gift to mother ? And what is the process of gifting the money ? Should it be registered somewhere ?
Thanks
Shivananda
January 12, 2010 at 5:17 am
Hello Shivananda,
I think you have not understood the gift tax. You can not reduce the tax by gifting others. If you are gifting, should be registred in the stamp paper for the proof.
Thanks,
Krishna
February 12, 2010 at 6:57 am
hi krishna i hope uve answered my question in the other blog on gift tax regards…
March 12, 2010 at 1:24 am
A gift or Amount to Grandson from Grand father (mothers father) of Rs.1,00,000/- will come under exempted or taxable.
Thanks
srinivas
December 13, 2011 at 9:25 am
dear,sir
my mother se gift 4lac by cash recived kar ley ya nahi taxebel hai
June 25, 2012 at 1:27 am
Hi ,
i want to pre close of my home loan(loan amount 10lac) now my father is retired from job so he want to give me the 10lac as gift is this amount taxable.
June 25, 2012 at 5:51 pm
Hello Neeraj,
It is not taxable. But, get the gift amount in the stamp paper for the proof.
Thanks,
Krishna
September 18, 2012 at 11:31 am
Dear Sir,
I would like to know if it is compulsory to have “FORMAL GIFT DEED” to be executed between me & parents for amount they may deposit at different times into my account, whenever they have money. I will have the copies of Paying-in-slip in which my parents have mentioned their PAN card number whenever they deposit into my account. Is this sufficient as document for the gift received & can I claim Tax exemption under Gift when I file Income Tax return. And what section is suitable to declare gift tax exemption?
September 24, 2012 at 8:33 am
Dear Krishnas,
Hope to get your comments as I need it urgently. Thanks for your understanding.
September 28, 2012 at 7:55 am
Is your website still active? If not, pls take it out so that people will not keep hopes on you. Thanks
December 22, 2012 at 4:58 pm
Daughter received gift from father in the form of property worth Rs.70 lakhs then tell me whether it is taxable and what rate