The scheme of taxability of gifts are mentioned below;
- Sum of Money : If the following conditions are satisfied then any sum of money received (i.e, monetary gift may be received in cash, cheque, draft, etc.) by an individual/ HUF will be charged to tax:
- Sum of money received without consideration.
- The aggregate value of such sum of money received during the year exceeds Rs. 50,000.
- Movable Property :
- Without Consideration : The aggregate fair market value of the property, if it exceeds Rs 50,000
- Inadequate Consideration : The difference between the aggregate fair market value and the consideration, if such difference exceeds Rs 50,000
- Immovable Property :
- Without Consideration : The stamp value of the property, if it exceeds Rs 50,000
- Inadequate Consideration : The difference between the stamp duty value and the consideration, if such difference is more than the higher of Rs 50,000 and 5% of the consideration.
*Situations in which sum of money or any property received by an individual or HUF is not charged to tax, i.e.,monetary gift is not charged to tax.(Click here)
*Property Means: A capital Asset of the assessee, namely –
- Immovable property being land or building or both
- Shares and securities
- Archaeological collections
- Any work of art or