Giving gifts are a way of showing affection and appreciation. However, when the financial value of the gift is substantial, it attracts tax liabilities. There are certain parameters and limits set by the Government in case of gifts. If the gift exceeds those limits, it ceases to be just a gift and is seen as a taxable income. This ebook gives complete details on how taxation of Gifts is applicable in various scenarios. It will also help you to understand how you can save taxation by Gifting.
Total Pages - 45
Content Index -
A. INTRODUCTION TO TAXATION OF GIFTS
1. Why it is important to offer gifts to others?
2. Why Gift Tax Act, 1958 was introduced?
3. Describe the features of Gift Tax Act, 1958
4. How the Gifts are taxed under Income Tax Act, 1961?
B. UNDERSTANDING THE TERM ‘GIFT’ (Under Income Tax Act)
5. What is meant by the Term Gift?
6. What are the factors important to decide the taxability of Gifts?
7. How the gifts are classified for taxation purpose?
8. What is meant by ‘Monetary Gifts’ for taxation purpose?
9. What is meant by Gifts received in Kind?
10. How the gifts in Kind are classified under Income Tax Act, 1961?
11. Which movable properties are taxable as gift under Income Tax Act, 1961?
12. What is included in the ‘Jewellery’?
13. What is covered under the term ‘shares and securities’?
14. What is immovable Property under Income Tax Act, 1961?
15. Does every specified movable / immovable property is treated as gift?
16. What is meant by Capital Asset?
17. What is meant by Consideration?
18. What is inadequate Consideration?
19. What is agricultural land located in rural area? Is it a capital asset?
20. I have received ₹ 1,00,000 as a gift through net banking. Is it covered under section 56(2)(x) for taxation purpose?
21. I have received a car as my birthday gift. Is it covered under Income Tax Act for taxation purpose? Will the answer be different, if I’ve received a smartphone?
22. I have received a diamond necklace as a gift. Is it my capital asset? Will it be covered under specified assets for taxation purpose?
23. I have received shirt of a Gold on my birthday. It is for my personal use and I wear it on auspicious occasions. Is it covered under Income Tax Act for tax purpose?
24. Recently, I purchased a residential flat from my relative. The market value of the flat is ₹ 60,00,000, however, my relative sold it to me for ₹ 40,00,000 only. Is it covered under section 56(2) for taxation purpose?
25. I am into a business of import and export of costly paintings. Some of the imported paintings are unsold and lying at my workshop. Is it my capital asset?
26. I am into a construction business. I have built 120 Flats this year. Out of which 80 flats are sold and 40 Flats are still unsold. How these unsold flats will be treated for taxation purpose? Will it be considered as my stock-in-trade?
27. I have purchased 3 residential flats in year 1996 as an investment. One is used for residence of me and my family. The other 2 flats are let out. Now, I am willing to sell the let-out properties. Will it be considered as my stock-in-trade?
C. TAXABILITY OF GIFTS
28. How the Cash Gifts are taxed under Income Tax Act, 1961?
29. What is meant by the ‘Total Cash Gifts’?
30. Is the cash gift received from abroad taxable in the hands of the receiver?
31. How the amount received as alimony is taxed?
32. What is the meant by ‘Stamp Duty Value of the Property?’
33. How the Stamp Duty Value of the Property is decided?
34. Is the immovable property received as a gift without consideration treated as Taxable under Income Tax Act, 1961?
35. What is the taxability of the gift, if immovable property is received for inadequate consideration?
36. Is there any exception to the taxability of Immovable Property, when it is received for inadequate consideration?
37. Illustrate the above provision.
38. What is the taxability of gift, when the Movable Property is received without consideration?
39. What is the taxability of gift, when the Movable Property is received for inadequate consideration?
40. Mr. Ashish received a gift of jewellery from his friends. Total Value of Jewellery received during the year is ₹ 75,000. How will it be taxed in the hands of Mr. Ashish?
41. What is the taxability of gift, if it is received by a minor?
42. Ms. Leena (Age 12 Years) received a birthday gift of Rs. 1,00,000. How will it
43. How the Fair Market Value of the Property is determined?
D. EXEMPTIONS FROM TAXATION OF GIFTS
44. Do I need to pay tax on all the specified movable and immovable properties received as a gift?
45. Which gifts are exempt from Tax?
E. GIFTS RECEIVED FROM RELATIVES
46. What is the definition of ‘Relative’ under the Income Tax Act, 1961?
47. What is the tax treatment, if gift is received from a relative?
48. What is the tax treatment, if the gifts are given to the relatives?
49. What is the taxability if the gifted property is sold?
50. What is the definition of ‘Cost of Acquisition?’
51. What is the Cost of Acquisition when the property is gifted by the Relatives?
52. What is the Cost of Acquisition when the property is gifted by the person OTHER THAN RELATIVES?
53. What is meant by ‘Period of Holding?’
54. How to calculate Period of Holding, if the gift is received from a relative?
55. What is the period of holding when the gifts are received from other than specified persons (i.e. Gifts received from non-relatives)?
F. CLUBBING OF INCOME
56. What is meant by ‘Clubbing of Income?’
57. What are the transactions covered under Clubbing of Income?
G. HOW TO SAVE TAXES BY GIFTING?
58. How a person can save a tax by gifting?
59. How can a person save his income tax by investing in Tax Free Instruments?
60. How can a person save his income tax by gifting to major son or daughter?
61. How can a person save his Income tax by gifting to parents?
62. How can your spouse share a tax burden?
63. How can a person save his Income Tax by gifting to his Son-in-Law?
64. How can a person save his Income Tax by gifting to his Fiancée?
65. How a person can save his income tax by giving loans to his Spouse and Daughter-in-Law?
H. INFORMATION ABOUT GIFT DEED
66. Is it required to register a Gift Deed?
67. What are the contents of a Gift Deed?
68. What precautions should be taken while preparing a Gift Deed?
69. What are the provisions relating to the Payment of Stamp Duty on gifts?
70. Where can I find the Stamp Duty Rates?
71. Can I cancel my Gift Deed?
72. Is it compulsory to make a gift deed for cash gifts?
73. How the stamp duty is calculated on transfer of property?
74. Can I make offline payment of stamp duty?
75. Is there any specimen format of Gift Deed?
Disclaimer - This book is not meant as Tax Advise or Financial Advice. It only gives the information about the stock or the company as per publicly available information and Yadnya's analysis of that information.