Saturday, 16 November 2013

Gift Tax


Gift tax was abolished with effect from October 1, 1998.  The gifts are no longer taxable in the hands of donor or donee.   However, w.e.f. September 1, 2004, any gift received by an individual or HUF will be included in taxable income, if the amount of tax exceeds Rs.25,000/-.   However,  gifts received from any of the following will continue to remain tax free :-
(i) Spouse;
(ii) Brother or sister;
(iii) Brother or sister of the spouse;
(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 (2) or (6) or received on the occasion of marriage or under a will by way of inheritance 

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