GK
IMPORTANT ACTS OF THE PARLIAMENT OF INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1957
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1958
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1959
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1960
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Detailed explanation-1: -As per the Gift Tax Act 1958, gift (in the form of cash, draft, check or others) is an excess of Rs. 50, 000/-received from one who doesn’t have any blood relations with the donee, were taxable. However, from 1 October 1998, Gift Tax got demolished and all the gifts made on or after that date were Tax-free.
Detailed explanation-2: -all gifts are charged to tax Sum of money received without consideration by an individual or HUF is chargeable to tax if the aggregate value of such sum received during the year exceeds Rs. 50, 000.
Detailed explanation-3: -However, gift-tax was abolished as per Section 75 of the Finance Act, 1998. Consequently, the Act ceased to have effect after 1th October 1998. Due to misuse of the abolition of gift-tax in the form of widespread transfer of insincere gifts from non-relatives, Section 56(2)(v) of the Income Tax Act, 1961 was enacted.