Question

received gift of rs 10000 from father and same amount is introduced into the business

Answer 1

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Section 56 – Taxation of gift received
TG Team| Income Tax 26 Nov 2013 154,167 Views 38 commentsPrint Friendly and PDF
Sonu Aggarwal

Taxation of gift received Under Section 56(2) of income tax act 1961

Taxation on gift provided U/S 56(2) of income tax act 1961.



As per income tax act gifts received are taxable in the hands of recipient under the head of other Sources and there is no taxation for the donor.

Here gift means any sum of money, Moveable property or immovable property which received without consideration or inadequate consideration.

Here property term include the following

Land and building (immovable)
Shares and securities (Securities Include debenture, bonds etc).
Jewellery (Jewellery includes ornaments made of gold, silver, platinum or any other precious metal whether or not attach any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel
Precious or semi-precious stones also include in the term of jewelry, whether it is set or not in any furniture, utensil or other article or worked or sewn into any wearing apparel