Gifts received by Individual & HUF - Section 56(2)(vii) - Income Tax - Ready Reckoner - Income Tax

Section 56(2)(vii) :- Gifts received by Individual HUF Where an individual or a Hindu Undivided Family receives, in any previous year from any person or persons on or after 01.10.2009 but before 1.4.2017 shall be taxable under the head of income from other sources. Asset Gifted Mode Taxability Any sum of money Category 1 : Without Consideration If aggregate value of money exceeds 50,000, the whole of the aggregate value of such money Immovable Property Category 2 : Without Consideration Stamp duty value of such property if it exceeds 50,000 Note :- In a case where the amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement for the transfer of such immovable property. The date of the agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of the agreement may be taken for the purposes of this sub-clause Category 3 : With consideration / Inadequate consideration (If stamp duty value exceeds the purchase price by more than 50,000) Value of gift = Stamp Duty Value Purchase Price Property being Shares Securities Jewellery Archaeological Collection Drawings Paintings Sculptures Any work of Art or Bullion Category 4 : With consideration / Inadequate consideration (If the Fair Market value of such property exceeds the purchase price by more than 50,000) Value of gift = Fair Market Value Purchase Price Category 5 : Without Consideration Fair Market Value of such property if it exceeds 50,000 Exception of section 56(2)(vii) this clause shall not apply to any sum of money or any property received - From any relative or On the occasion of the marriage of the individual from anyone or under a will or by way of inheritance or in contemplation of death of the payer or from any local authority as defined in Section 10(20) or from any fund or foundation or university or hospital or any trust or institution referred to in section 10(23C) or from any trust or institution registered u/s 12AA ; or by way of transaction not regarded as transfer under clause (vicb), (vid), (vii) of section 47 . For the purpose of this clause, relative means- In case of an Individual Spouse of the individual Brother or sister of the individual Brother or sister of the spouse of the individual Brother or sister of either of the parents of the individual Any lineal ascendant or descendant of the individual Any lineal ascendant or descendant of the spouse of the individual spouse of the person referred to in clauses (ii) to (vi) In case of Hindu Undivided Family, any member thereof. Notes: Section 56(2)(vii) will have application to the property which is in the nature of a capital asset of the recipient and therefore would not apply to stock-in-trade, raw material and consumable stores of any business of such recipient. Car Wrist watch are not property for the purpose of Section 56(2)(vii) Stamp duty value means the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.