Gift

Gift

INTRODUCTION:

What is a GIFT?

            GIFT is transfer of asset without consideration.

Who can give GIFT?

            Anyone can give gift to any person, subject to Taxation rules.

TAXATION:

            ●Donor:

                        Gift is ALWAYS given from post tax income or Inherited property. It doesn’t matter who is the Recipient.

            ● Recipient:

                        Taxation is different to recipient depending upon Whether the donor is a Relative or not.

                                    If donor is Relative: Entire amount is Tax free.

                                    If donor is NonRelative: Only Rs 50000 is tax free. 

                                    If Recipient gets >Rs. 50000 gift from Non relative the entire amount is taxable.

LESSONS LEARNT:

1. There is No limit of number of donors. Its aggregate value Rs 50000.

2. There is specific format of GIFT deed. 3. The Gift Deed should ideally be on stamp paper