FemaOnline » GIFT TAX

created by Rajesh Dhruva

GIFT TAX

NRIs CORNER - GIFT TAX

Gift-tax :

Gift Tax has been abolished in India since 30.9.1998. Hence, there is no gift tax whatsoever for any gift including gift of immovable property.

However amounts of gifts exceeding Rs. 50,000 received from persons who are not covered by the definition of 'close relative' are to be taxed as taxable income in the hands of the donee. As such, donee is required to pay income tax on the amount of gift or market value of movable properties.

Provided further that this clause shall not apply to any sum of money or any property received

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(d) in contemplation of death of the payer or donor, as the case may be; or

(e) from any local authority as defined in the Explanation to clause (20) of section10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section10; or

(g) from any trust or institution registered under section 12AA.

(a) property means

(i) immovable property being land or building or both;

(ii) shares and securities;

(iii) jewellery;

(iv) archaeological collections;

(v) drawings;

(vi) paintings;

(vii) sculptures; or

(viii) any work of art;

(b) For the purposes of this clause, relative means

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);

(viii) In case of Hindu Undivided Family, any member thereof;