TAXABILITY OF GIFTS UNDER THE INCOME TAX ACT, 1961
JOINT STUDY CIRCLE MEET OF TPA & CA, INDORE BR. DT. 15.01.2009
by - CA. Hitesh J. Mehta
Brief Introduction:
Gift is an important subject not only from the law makers and tax consultants but also for the general public. It is from ancient times one of the most famous modes of transferring movable as well as immovable property. The legislation and revenue often flown upon the concept of gift, as in several cases, gifts are used as a tool for minimizing tax liability.
Gift tax was introduced in India in the year 1958 and continued for more than 40 years but to ensure that there are no leakages of income-tax revenue through the mechanism of gifts, then Finance Minister proposed to tax the gifts made after 30.09.1998 under the Income-tax Act itself in the hands of the recipients.
However to curb ever growing tax evasion and money laundering, the a ...more