Saturday, October 3, 2009

Pay tax on property received in gift


DELHI: Starting Thursday, you will be taxed on any property given as gift whose value exceeds Rs 50,000. So far, only cash gifts of a similar amount were taxed.


Individuals receiving any such gifts on or after October 1 will have to pay income tax due on the value of the gift and disclose the taxable value of such property in the return of income for assessment year 2010-11 and subsequent years.

According to the CBDT note, there are certain categories exempted from paying taxes. They include gifts received from a close relative, on the occasion of marriage, under a will or by way of inheritance, in contemplation of death of the donor and from a trust. Close relatives have been defined as spouse, brother or sister, brother or sister of spouse, brother or sister of either parents, any lineal ascendant or descendant and spouse of any of the relatives.

POSTED BY: PALLAVI SINGH
PGDM III SEM

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