ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -all gifts are charged to tax Hence, if the aggregate value of gifts received during the year exceeds Rs. 50, 000, then total value of all such gifts received during the year will be charged to tax (i.e. the total amount of gift and not the amount in excess of Rs. 50, 000).

Detailed explanation-2: -(2) Where a person makes a gift which is not revocable for a specified period, the value of the property gifted shall be capitalised value of the income from such property during the period for which the gift is not revocable.] The Gift-Tax Act, 1958 1[***] The Gift-Tax Act, 1958.

Detailed explanation-3: -You can think of the gift tax the same way you would income taxes, where each chunk of money is taxed at the rate for the bracket it falls into. The first $10, 000 in taxable gifts is taxed at 18%, the next $10, 000 is taxed at 20%, the next $20, 000 is taxed at 22%, and so on.

Detailed explanation-4: -The Parliament of India introduced the Gift Tax Act in 1958, and gift tax is essentially the tax charged on the receipt of gifts. The Income Tax Act states that gifts whose value exceeds Rs. 50, 000 are subject to gift tax in the hands of the recipient. Gifting is one of the many ways to express love and affection.