Are monetary gifts or property received by an individual or Hindu Undivided Family (HUF) taxable?

The scheme of taxability of gifts are mentioned below;

  1. 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:
    1. Sum of money received without consideration.
    2. The aggregate value of such sum of money received during the year exceeds Rs. 50,000.
  2. Movable Property :
    1. Without Consideration : The aggregate fair market value of the property, if it exceeds Rs 50,000
    2. Inadequate Consideration : The difference between the aggregate fair market value and the consideration, if such difference exceeds Rs 50,000
  3. Immovable Property :
    1. Without Consideration : The stamp value of the property, if it exceeds Rs 50,000
    2. 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 –

  1. Immovable property being land or building or both
  2. Shares and securities
  3. Jewellery
  4. Archaeological collections
  5. Drawings
  6. Paintings
  7. Sculptures
  8. Any work of art or
  9. Bullion.

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