By means of the Gift Tax Act, the government instituted gift tax in 1958. The aforementioned Gift Tax Act was repealed in 1998. The Income Tax Act of 1961 now governs how gifts are taxed.
Different kinds of Gifts:
Gifts come in a variety of forms, including cash, mobile goods, and immovable property.
Shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, and any other kind of artistic creation are all examples of movable property. Bullion is another option.
Immovable property may take the shape of a building, a plot of land, or both.
Under section 56(2)(vi), gifts:
If the total amount of money received without consideration surpasses Rs. 50,000, the entire amount would be charged.
If there is no consideration and the property’s stamp duty value exceeds Rs. 50,000, there will be a fee.
The stamp duty value of the property that exceeds the consideration will be charged for considerations that are less than the stamp duty value of the property by an amount greater than Rs. 50,000.
If any item, outside real estate, was received –
- Without consideration, all of the aggregate fair market value (FMV) of such property, which exceeds Rs. 50,000, would be charged.
- The aggregate FMV that exceeds the consideration shall be charged if the consideration is less than the aggregate FMV by more than Rs. 50,000.
Provided, however, that no amount of money received is subject to this condition;
- from a relative of any kind; or
- on the occasion of marriage of the individual; or
- under a will or by way of inheritance; or
- in contemplation of death of the payer.
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