Income Tax efiling: Received gifts during the year? Here is what that means for your ITR – Financial Express

  • Press Release|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 27 October, 2020

Recent Posts

News, Blog, FEMA & Banking

Rs 10L Recovery Limit for DRT Filings Now Also Applies to Applications Between 26.09.2018 and 30.06.2019 | Finance Ministry

Blog, News, Company Law

SEBI Amends Alternative Investment Funds Regulations, 2012 | Introduces a New Regulation w.r.t ‘dissolution Period’

Latest from Taxmann

(By CA Naveen Wadhwa, DGM, and CA Tarun Kumar, Assistant Manager, Taxmann.com)
 
Earlier gifts were given only on important occasions. Now gifts are used as a tool for income-tax planning. There are several events when we receive gifts from our family members or friends. Many people believe that the gifts received out of love and affection are exempt from tax and don’t disclose the same in the income tax return (ITR). However, this isn’t the correct trend.
 
Gifts are taxable under the Income Tax Act, unless they fall under the category of exemption. Hence, gifts should be duly disclosed in ITR and taxes should be paid on them if they aren’t exempt in the hands of receiver. The non-disclosure of gifts may attract penalty which ranges from 50% to 200% of tax payable on income sought to be evaded.

 

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Comments are closed.

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied