Taxability of Gifts Received by Individual or HUF Member u/s 56(2)x
People from all over the world love to present gifts to their loved ones on different occasions. In this practice, it is seen in several cases that valuable assets/large sums of money are transferred and thus, from FY 2004-05 onwards, Government has considered to add tax on gifts to be applicable as receiver’s income under the head ‘Income from Other Sources’. Gifts, of type movable/immovable assets as received by an individual/a member of HUFs without/with consideration more than a threshold value would be treated as taxable under the clause (x) of Section 56(2) of Income Tax Act that is introduced in Finance Act 2017.
Note: A ‘Gift’ as defined u/s 122 of the Transfer of Property Act, 1882, is the transfer of any movable/immovable property which has been made by one person voluntarily and without any consideration to another person. ‘Donor’ is one who presents a gift and ‘Donee’ is the person who is receiving a gift.
Types of Gifts Eligible of Taxation u/s 56(2)x income tax act.
Receipt provided for a sum of money or immovable property that is more than INR 50 thousand is taxable in the hands of the receiver. The Gifts include:
Gift in Cash:-
- Money received without consideration with aggregate value more than INR 50 thousand. This whole amount is taxable.
- Immovable property without consideration, when its Stamp Duty Value is more than INR 50 thousand. Whole Stamp Duty amount is taxable.
- Immovable property with consideration, when its Stamp Duty more than the highest amount of the following:
- INR 50 thousand
- 5% of the consideration
Difference of Stamp Duty and Consideration Value is taxable.
- Aggregate Fair Market Value (FMV) of movable property (defined and specified) if it is more than INR 50 thousand. This whole amount is taxable.
- Movable property (defined and specified) with consideration, lower than FMV but more than INR 50 thousand. Difference of Property Value and Consideration Value is taxable.
Tax-Free Gifts as Defined u/s 56(2)x (Fully Exempt under Income Tax.)
Certain gifts are considered Tax-Free u/s 56(2)x, if they satisfy any of these conditions:
- Gifts given by relatives is exempt.
- Any gift of the type movable/immovable asset that is received from specific relatives is tax free.
For individuals, gifts from these relatives are tax-free:
- Any inherent ascendant or descendant
- Brother/Sister of either of the parents
- Brother/Sister of the spouse
- Any inherent ascendant or descendant of the spouse
For HUFs, gifts from these relatives are tax-free:
- Any member
- Gifts received in these circumstances/from the source as mentioned:
- Provision in a will/Inheritance
- Protocol followed after the death of a donor
- Local authority as defined in clause 20 of Section 10
- Any fund/Foundation/Other educational institution/University/ Hospital/Other medical institution/Any trust or institution as defined u/s 10
- Any trust/ institution registered under section 12A or section 12AA
- Any transaction from trust/institution that is not regarded as transfer u/s Section 47
- Any individual by a trust that serves for the benefit of any relative of an individual
- Compensation (other than payment), received to the employee in relation to the termination of employment/modification of employment terms and conditions applicable in such circumstances
Note: Any gifts received from a person, who is not a relative are taxable if they satisfy the tax eligibility as mentioned in Section 56(2)x.
List of Donors as per definition of relatives under Income Tax Act
- Father (Papa or Pitaji)
- Mother (Maa or Mummy)
- Brother (Bhai)
- Sister (Bahin)
- Son (Beta or Putra)
- Daughter (Beti or Putri)
- Grand Son (Pota or Potra)
- Grand Daughter (Poti or Potri)
- Husband (Pati)
- Wife (Patni)
- Sister’s Husband (Jija)
- Brother’s Wife (Bhabhi)
- Wife’s Brother (Sala)
- Wife’s Sister (Sali)
- Husband’s Brother (Dewar)
- Husband’s Sister (Nanad)
- Mother’s Brother (Mama)
- Mother’s Sister (Mausi)
- Mother’s Sister Husband (Mausa)
- Wife’s brother’s wife (Sala Heli)
- Father’s Brother (Chacha or Tau)
- Father’s Brother’s Wife (Chachi or Tai)
- Father’s Sister’s Husband(Fufa)
- Father’s Sister (Bua)
- Grand Father (Dada, Pardada)
- Grand Mother (Dadi, Pardadi)
- Daughter’s Husband (Jawai)
- Son’s Wife (Bahu or Putra Vadhu)
- Spouse Father (Sasur)
- Spouse Mother (Sas)
- Spouse Grand Father (Dada Sasur)
- Spouse Grand Mother (DadiSas)
- Brother’s Wife (Bhabhi)
- Mother’s Brother’s Wife (Mami)
- Husband’s Brother’s Wife (Devrani or Jithani)
Author is a Krishna Gopal Varshney and can be reached at E-Mail:- email@example.com
Due date of all IT Return filings extended from July 31 to November 30
Due Date Tax audit from 30th September 2020 to 31st October 2020
Updated TCS Rate Chart For Financial Year 2020-2021 Assessment year 2021-2022
Updated TDS Rate Chart For Financial Year 2020-2021 Assessment year 2021-2022
Income Tax New Rate AY 2021-22 ( FY 2020-2021) (Section 115BAC)
CBDT has notified new Income Tax Return
Income Tax Old Rate AY 2021-22
A Comparison of Old and New Tax Regime Rates for AY 2021-22
ITR-4 (SUGAM) | The ITR form Now Available for E-Filing at Income Tax Portal
Linking Your Aadhaar with PAN for filing ITR and E-verification
Presumptive Taxation Scheme of Section 44AD, Section 44ADA, Section 44AE, for Business and Professions
Revised IT Return under Section 139(5) of Income Tax Act
Big relief for these small taxpayers holders provided 40th GST council meeting
Big relief for these GST small taxpayers holders provided Facility of filing Nil Form GSTR-3B through SMS
Cost Inflation Index (CII) | Meaning & Index from 2001-02 to 2020-21
New Annual Information System (AIS) to Replace Annual Tax Summary Statement Form 26AS
Comparison Of Old And New Tax Regime Rates For AY 2021-22
Filing of Income Tax Return A.Y. 2020-21,due date is extended till 30th November, 2020
Provisions of Online Correction in Form 26QB (TDS ON Sale of Property)
Weekly Update:- INCOME TAX, GST, Corporate & Allied Laws
Extended Last Date for Income Tax Returns for Financial Year 2018-19 ( assessment year 2019-20) from 31st March, 2020 to 30th June, 2020.
Taxability of Gifts Received by Individual or HUF Member u/s 56(2)x
Live interactive online classes (ALL INDIA BASIS) Concessional Price for 10+1 & 10+2 commerce all subject
Download your Aadhaar Card using your Mobile Number
Section 44AB New Amendments on 2020 and Their Impacts in Businesses
Income from House Property and Taxes
Institute of Chartered Accountant in India (ICAI) has launched Bulk UDIN for Certificates
HAVE YOU FILED YOUR RETURN FOR A.Y. 2019-20? IF NOT , 30 JUNE 2020* COULD BE YOUR LAST CHANCE.
Sanjeev Varshney Classes
Presents Live Virtual Classes on ALL-INDIA BASIS at a concessional price for CA & CMA Foundation commencing soon.
Filing Income Tax Return (ITR) for NRI
Filing Of Income Tax Return A.Y. 2019-20,Due Date Is Extended againTill 31th July, 2020
PAN-Aadhaar link date again extended Till 31th March, 2021
ITR-2 available on its e-Filing portal
relief by waiver of late fee for delay in furnishing outward statement in FORM GSTR-1 for tax periods for months from March, 2020 to June, 2020
CBIC to provide big relief for these GST Small Taxpayers Holders by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.
Sanjeev Varshney Classes Presents Live Virtual Classes On ALL-INDIA BASIS At A Concessional Price For CA and CMA Foundation New batches starting now!
Deduction 80EEA in respect of Interest paid on Loan Taken for Acquisition of Residential House Property (Affordable Housing)
GST DATES EXTENDED AGAIN TILL 30.09.2020 FOR ALL ASSESSEE Notification no 57/2020 30.06.2020
FILING FOR INCOME TAX RETURN A.Y 2020-21
Section 194 N Amendment in Finance Bill 2020 – TDS Rate Goes Up on Cash Withdrawal
Big Relief For These GST Small Taxpayers Holders Provided Facility OfFiling NIL Form GSTR-1 through SMS on GST Portal.
BIG BREAKING IMP ANNOUNCEMENT CA MAY 2020 EXAMS
ITR-2 Excel utility Available On Its E-Filing Portal
Relief to small and middle class taxpayers, the date for payment of self-assessment tax u/s 234A of INR 1 Lakh Tax Liability Limit
CBDT Notification No. 35/2020 Revised Income Tax Due Dates, Interest on Delayed Payment
Who all are required to file return of income under newly inserted 7th Proviso to Section 139(1) of IT Act, 1961.
CBDT issues press release on 'Verification of applicability u/s 194N' functionality in e-filing portal.
One-time relaxation for Verification of tax-returns for the Assessment years 2015-16 to 2019-20 which are pending due to non-filing of ITRV form and processing of such returns
My friend Sanjeev Varshney starting some new batches for CA & CMA Foundation students in this month of July 2020.
e-Filing Helpdesk is temporarily impacted due to imposition of lockdown from 14-22 July
Important Announcement November 2020 CA Examinations
Exclusive COVID-19 UNLOCKDOWN Offer, Join Online Self-Learning GST Course at up to 90% discount
Filing Of Income Tax Return A.Y. 2019-20,Due Date is Extended AgainTill 30 September, 2020
ITR-3 Excel Utility Available On Its E-Filing Portal
GST Alert: July 2017 data removed from GST Portal:
Amendments in the E assessment Scheme 2019 published vide notification of the Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes
Best Judgment Assessment Income Tax Notice U/s 144
Make your instant e-PAN card absolutely free within ONLY 3 minutes
All Statutory Compliance Calendar for September 2020
GSTR – 2B: Auto Drafted ITC Statement Launched from July 2020
5-year wait for gratuity is over, big gift to employed people.
Income tax Return Filing Due Dates FY 2019-20, AY 2020-21
A big Relief given by Ministry of Corporate Affairs extending the timeline for holding Annual General Meeting till December 31st from September 30th.
Prime Minister Narendra Modi gave three gifts to the taxpayers -Faceless Assessment, Faceless Appeal and Taxpayers Charter.
Only 3 days left, the central government has implemented the 'One Nation-One Ration Card' scheme,
Final Opportunity ITR E-Verification Even after filing ITR, it is very important to do this job
The Ministry of Corporate Affairs has extended the duration of several schemes till 31.12.2020
CBDT has notified Belated and Revised Income Tax return deadlines extended again 30 September, 2020 to 30 November, 2020.
The Income Tax Department has issued new guidelines regarding tax collection at source TCS.
Statutory Compliance Calendar for October 2020
Recommendations of the 42nd GST Council Meeting held today
DONATIONS MADE THE PM CARES TO FUND SHALL BE ELIGIBLE FOR THE FOLLOWING BENEFITS
7th pay commission news for LTA
ICAI November CA Inter & Final Exams postponed
Difference of Assessment year and Financial year
Good news for EPF account holders PF related complaint will be cleared on WhatsApp message,
Special Window to States for meeting the GST Compensation Cess shortfall
Extension of due date of furnishing of Income Tax Returns and Audit Reports
Extension of due dates for Annual Return and Reconciliation Statement for 2018-19
After the death of the taxpayer, his heir has to submit his income tax return.
Buy 100% Pure Silver/Gold Coins & Notes
Class 2 DSC’s issuance will be withdrawn/ stop from 1st January 2021
Statutory Compliance Calendar for December 2020
All Valid GST registration will be physical verification
Income tax return 2019-20 filing: last date, list of documents required for filing income tax return
CBDT Has Notified Income Tax Return Deadlines Extended Again
New Income Tax Return filing due dates for FY 2019-20, AY 2020-2021
Union Budget 2021-22
Now get PAN card made at home
e-Campaign - High Value Transactions for AY 2019-20
Public Provident Fund i.e. PPF is considered a better option for long term investment
Govt extends timelines of certain compliances, to mitigate the difficulties faced by taxpayers due to the ongoing COVID-19 pandemic.
Old And New Tax Regime Rates For AY 2022-23
Income Tax Return Deadlines:
Extension of time limits of certain compliance to provide relief to taxpayers
Launch of new e-filing Portal of the Income Tax Department
Recommendations of 43rd GST Council meeting
Statutory Compliance month for June 2021
New, taxpayer friendly e-filing portal of IT Department to be launched on 7th June, 2021
Issues on New Income tax e-filing 2.0 Portal
Finance ministry to hold meeting on 22nd June 2021 with Infosys on issues in the new income tax Portal
Cost inflation index for Financial Year 2021-22
100% growth in Net Direct Tax collections for the Financial Year 2021-22
Extension of Timelines
Economic Relief Measures announced for various sectors Total: Rs 6,28,993 crore
Relaxation in electronic filing of forms 15CA & 15CB
Finance Ministry meeting with infosys on glitches in e-filing portal of income tax department - resolved till 15 september 2021
CBDT Has Notified Income Tax Return Deadlines Extended Again
Ram Nath Kovind (President of India) Speaking
Union Budget 2022-23 INCOME TAX UPDATES
filing updated income tax returns proposed in Budget 2022
Crypto Taxation Guide Budget 2022
last date of filing ITR| Last date| Details on new forms and complete checklist
Free Company Search Company Name Check, MCA Search - Myitronline
Income Tax Rules Change- Income Tax has made 3 major changes, you must know…
New record for Income Tax Department as over 5.83 crore lakh IT Retuns filed on till 31st July, 2022.
What is ITR? Which ITR should you File? Types of ITR, How to file ITR? Income Tax Returns e-filing – ITR forms for FY 2021-22, AY 2022-23
compliance calendar for september 2022
GST slab rates in India
All you need to know about the salary slip
Is pension Taxable?
What is a GST audit?
form gstr 3b filing
Tax Compliance and Statutory due dates for November 2022
statutory due-date calendar December 2022
Top 5 Mistakes You Must Avoid In Your Tax Planning
6 Robust Reasons to not to miss NPS in your tax planning
18% GST on Term & Health Insurance is too heightened! Know more
File Belated income tax return By the 31st of December 2022 Considering the notice & Penalties
Statutory & Compliance Calendar For January 2023
Guide to Standard on Auditing (SA) 230, Audit Documentation
The online gaming industry attracts 28% GST on gross gaming revenue, not on the entry amount
Union Budget 2023
Budget 2023 Updates: A glimpse of New income tax slabs 2023-24 - Myitronline
Budget 2023 - Impact On Market Infra, Tech & Others - Myitronline
Things To Do After Filing Your Income Tax Returns
Budget 2023 - 5 Major Announcements Proposed In Union Budget 2023
Union Budget 2023: PM Narendra Modi Praised The budget Of “Amrit Kaal
Filing ITR - Things to Keep In Mind While Filing ITR
Common ITR Form - 5 Ways In Which Common ITR Will Benefit Taxpayers
5 Things Taxpayers must follow while filing ITR
Everything About Property Tax You Must Know
CBDT : “Sign of economic Revival” Net direct tax collection in FY 2022-23 increase 23%
Analysis of New Disclosures in GSTR-3B
income tax returns but have not yet received the refund
Check your Income Tax Refund
5 Best Tax-Saving Investments That Everyone Must Know
The Audit & Its Importance
Income Tax Through An e-pay Tax Option
Penalties & Late fees After missing the audit report
All About One Person Company
Section 24 of the Income Tax Act- Things You Must Know
TDS Rate Chart
CBDT notifies ITR Forms For AY 2023-24) In Advance
How can NRIs prevent double taxation under DTAA?
Statutory & Compliance Calender For March 2023
CBDT To Take Legal Action Against 33000 ITR Mismatched Cases
Tax Saving Tips in 2023
AIS app for Taxpayers
PAN Aadhar linking Deadline Extended
Statutory & Compliance Calender For April 2023
Analysis 8 GST Notifications Issued 31st march 2023