MANAGEMENT

Detailed explanation-1: -Whenever a person receives a gift (includes money, immovable property or movable property) of more than Rs. 50, 000 without consideration, the entire amount will be taxed in the hands of the donee under a separate heading titled ‘Income from other sources’.

Detailed explanation-2: -It will be charged to tax under the head “Income from other sources”. Apart from taxing immovable property received without consideration, i.e., received as gift, the Income-tax Act has also designed provisions for taxing immovable property received for less than its stamp duty value.

Detailed explanation-3: -In terms of tax compliance, a gift is not taxable in the hand of the giver, but if you are the receiver you need to keep in mind certain classifications. As mentioned above, gifts received by any person attract tax, however, there are some exceptions to this.

Detailed explanation-4: -It is a custom to gift your closed ones during occasions especially in India. But did you know the gifts are taxable? As per the Income tax act of 1961, if the value of the gift exceeds Rs. 50, 000 then the gift is taxed as income in the hands of the person who receives the gift.

Detailed explanation-5: -Gift tax is levied under the Income Tax Act. Therefore, it is a direct tax. Gifts are taxable at normal slab rates if the value of gifts exceeds Rs. 50, 000.