Home News Acquired Gold, Money Or Property This Diwali? See How It May Be Taxed

Acquired Gold, Money Or Property This Diwali? See How It May Be Taxed

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Acquired Gold, Money Or Property This Diwali? See How It May Be Taxed

You Can Be Taxed On Certain Diwali Gifts Received, Check Details

The competition of Diwali is all about spreading smiles and pleasure. Individuals additionally trade sweets and presents with their relations and shut buddies throughout this time.

In places of work, too, workers are given bonuses, presents and sweets.

Whereas this has change into an important a part of Diwali celebrations throughout the nation, many stay oblivious that presents obtained in a monetary 12 months may be taxed underneath the prevailing Revenue Tax (I-T) legislation.

In line with the Revenue Tax Act, tax may be levied on sure presents relying on their worth and from whom you obtained them.

If the reward you will have accepted doesn’t fall underneath the exempted class, you’ll have to disclose it whereas submitting the Revenue Tax Return (ITR).

When the mixture worth of presents a person receives exceeds Rs 50,000 in a monetary 12 months, it is going to be topic to tax as per Part 56(2) of the Revenue Tax Act.

These presents may be within the type of money or variety. Nevertheless, presents given by shut relations or members of the family have been given tax exemption. This implies you do not have to pay taxes on presents out of your brother, sister, mother and father and partner.

The definition of relations, nonetheless, doesn’t embody buddies; thus, presents obtained from them fall within the class of “revenue from different sources” and are topic to tax as per the relevant tax slab.

Items are labeled into totally different classes relying on their nature.

Items comparable to money, draft or cheque are handled as financial presents and may be taxed if the mixture worth is greater than Rs 50,000 in a monetary 12 months.

If presents have been given within the type of land or constructing, they’re thought-about immovable property. Right here, the reward turns into taxable if the stamp obligation worth of the property exceeds Rs 50,000.

In the meantime, presents comparable to jewelry, work, drawings, shares/securities, and collections, amongst others, are movable properties and are topic to tax if the honest market worth of the gadgets obtained by a person is greater than Rs 50,000. 

Whereas jewelry is taxable, a motor automobile given as a present isn’t included within the definition of prescribed movable property and thus can’t be taxed.

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