How is gift tax calculated in india

However, here are some exceptions to this. General caution: Due to extensive tax planning using gifts, gifts in India generally fall under the scrutiny of the tax department, especially if the quantum is huge. Hence, it may be advisable to maintain documentation to establish the genuineness of gift received and sufficient source of funds with the donor to justify the gift.

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The provision of Gift Tax is mentioned in brief below:. To compute gift tax stamp duty for immovable property, stamp duty needs to be considered.

However, the stamp duty value can be higher for various reasons and one such reason can be the time gap between date of registration and agreement fixing the consideration.

Hence, with regards to gift tax, stamp duty value as on the date of agreement fixing the consideration must be kept in mind if the following conditions are satisfied:.

Consideration is either paid in part or can be fully paid by way of an account payee cheque, by using electronic mode of transfer through bank account or bank draft on or before the date of agreement for transfer. Besides, the tax officer is required to evaluate all the records in case the taxpayer has questioned or disputed the stamp duty value adopted by valuation authority as per Section 50C of the Income Tax Act.

As rules laid by the Government there are certain gifts that do not attract tax as and when received by any person in the form of Gift.

Therefore, it is important to maintain documents to establish the genuineness of gift received. Any gift in form of cash, cheque, land, building or property in taxable if it exceeds more than Rs. You can give an amount up to Rs.

No, gift tax is not abolished in India. Any gift received with an amount more than Rs. Yes; You have to pay taxes on the money gifted to you, as the receiver will have to bear the taxes applicable on them if the amount exceeds more than Rs.

It is the person who receives gift it is subject to tax. You can avoid gift tax by learning more about the Gift Tax laws in India. However, the best way to avoid gift tax is by avoiding to receive any gift in form of cash, property etc.

Are there any occasions apart from marriage in which monetary gift received by an Individual will not be charged to tax? The only gift received by individual at the time of marriage is not charged to tax. However, tax will be charged on occasions like birthday, anniversary, etc.

Yes, the gifts received from friends will be taxable as friend is not a relative as per Income Tax Department. Professional Tax Professional Tax in Maharashtra. PF Withdrawal Salary calculator. Plan your next. Malaria Mukt Bharat. Wealth Wise Series How they can help in wealth creation. Honouring Exemplary Boards. Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency.

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