Last Update: January 25, 2023, 2:02 pm IST
If the value of the gift exceeds Rs., the recipient of the present will be liable to tax on the same as income. 50,000.
If the value of the gift exceeds Rs., the recipient of the present will be liable to tax on the same as income. 50,000. Gifts come in all shapes and sizes.
The eyes of the nation are fixed on the Union Budget 2023, which will be presented in Parliament in about a week. Tax cuts and exemptions are one of the most important aspects of the budget for the common man. Will the latest Budget leave more disposable income in the hands of the one spendthrift that bothers us most? This can be done by raising the basic exemption limit, lowering tax rates, adding new exemptions or deductions for costs and investments, and raising dollar limits on pre-existing deductions and exemptions.
However, there is something to discuss and that is gift tax. In India, gift tax was first enacted in 1958. It is levied in specified situations on giving or receiving gifts aggregating to more than Rs 50,000. The government abolished it in 1998. It was revived in 2004 in a modified form to include income tax provisions.
If the value of the gift exceeds Rs., the recipient of the present will be liable to tax on the same as income. 50,000. Gifts come in all shapes and sizes, including money, jewelry, real estate, stocks, cars, and more.
Discount?
1) Income received from relatives is not taxable. This includes any blood related income but excludes income from cousins and friends.
2) Money received by way of inheritance or will.
3) Money received in anticipation of the death of the donor or donee.
4) Money received from local government [as described in the Explanation to Section 10(20) of the Income-tax Act],
5) Money received from any trust, institution, university, foundation, hospital, or other medical facility listed in section 10 as well as other educational or medical institutions (23C). From assessment year 2023-24, this exemption is unavailable if a sum is received by a specified person as mentioned in section 13(3).
6) Income received from or provided by a trust or organization recognized by section 12A, 12AA, or 12AB
7) Funds, trusts, institutions, universities, other educational institutions, hospitals and other medical facilities referred to in section 10(23C)(iv), (v), and (vi) may all receive money from (through).
8) Any money received as a result of demerger, amalgamation, or business reorganization of the company under section 47.
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