Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 ITR Filing 2025: These individuals are exempt from paying tax. Do they need to file returns?
 Full List Of Trump's Reciprocal Tariffs Announced Wednesday
 Top 5 tax-saving investment options for salaried individuals to consider before March 31, 2025
 5 lesser lesser-known avenues of tax saving you can use to save income tax before March 31, 2025
 March 15 is deadline for last advance tax installment: Know if you must pay

Be prepared to pay income tax
October, 01st 2009

From Thursday, if you receive any property, jewellery or any work of art worth more than Rs 50,000 as a gift, brace up to pay an additional tax.

According to amendments in the Income Tax Act 1961, six kinds of gifts (see box) will be brought under the income tax net if the value of gift were above Rs 50,000. The onus on paying the tax will rest with recipient of the gift, a finance ministry statement said.

Property or valuables received from a relative, through inheritance or will, as a wedding gift or as endowment from a trust or institution have, however, been spared from the tax net.

Earlier cash gifts exceeding Rs.25, 000 were subject to tax with effect from April 2004. Later the Act was amended in 2006 raising the threshold limit for income tax on cash gifts to Rs 50,000.

In addition, persons should also disclose the value of such gifts while filing income tax returns from the next financial year ( 2010-11).

Cash gifts also enjoy exemptions similar to for gifts-in-kind.

Experts said that move is aimed to curb the practice of making payments through property and other valuables. Such transactions are carried out to minimise the amount of cash transfer that would attract tax payments.

This (the imposition of income tax on gifts and property) has been done to ensure that transactions on valuable items are brought under the tax net, said Delhi-based financial planner.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2025 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting