IFOS

Question 1

Are monetary gifts received by Individual/ HUF taxable?

Answer 1

Yes
1.Cash, cheque, draft, etc.
and 2. Aggregate value of such money recd. during PY exceeds 50,000

Question 2

Sit. where monetary gift received by Individual / HUF not taxable

Answer 2

Gift received from

1. Relative or members of HUF
2. on Marriage
3. under Will/ Inheritance
4. in Contemplation of death of payer/ donor
5. Local Authority
6. fund, foundation, university, other educational institution, hospital or other medical institution
7. by way of transaction not regarded as transfer
8. from an Individual by a trust created or established solely for the benefit of relative of the Individual

Question 3

Gift from whom (relatives) are exempt from tax

Answer 3

1. Spouse
2. Children and spouse
3. Children of children
4. Brother and spouse
5. Sister and spouse
6. Brother in law and spouse
7. Sister in law and spouse
8. My mother, father, grandmother , grandfather
9. Spouse’s mother, father, grandmother, grandfather
10. My or my spouse’s parents’ brother and sister and their respective spouses

Question 4

if aggregate value of gift recd. (cash) during PY by indv/huf exceeds 50 k , whether total amt of gift is taxable or only in excess of 50 k

Answer 4

if total exceeds 50 k , then entire gift recd during PY taxable

Question 5

When is gift of immovable property taxable

Answer 5

1. if immovable property is received by an Individual or HUF without any consideration
   - stamp duty value exceeds Rs. 50000
   - - then Stamp duty of immovable property is fully chargeable to tax
2. if immovable property is received by an Individual or HUF with low consideration
   - and if (SDV - Consd.) > 50,000
   - and if sdv> 110% of consideration

then difference between SDV and consd is taxable

Question 6

Limit on immovable property is transaction wise or in aggregate

Answer 6

the limit of Rs. 50,000 is to be applied transaction-wise and all immovable properties received as gift during the year are not to be clubbed for applying the limit of Rs. 50,000.

Question 7

where the date of an agreement and date of registration are not same, SDV on which date to be taken

Answer 7

SDV on date of agreement
only when the amount of consideration is received by account-payee cheque or bank draft or online transfer or through such other electronic mode

Question 8

Change in safe harbour limit of 110% due to covid

Answer 8

the safe harbour limit is increased from existing 10% to 20%

• in case of transfer of residential property
• during the period from 12-11-2020 to 30-06-2021
• by way of the first-time allotment to any person. Further, the consideration received or accruing as a result of such transfer should not exceed Rs. 2 crores

Question 9

Are gifts of movable property received by indv./huf taxable?

Answer 9

1. Received for no cons.
2. and prescribed items received
   3.and if aggregate FMV exceeds 50,000 during PY
   then full FMV is taxable
   OR

if aggregate difference between FMV and consd. received for such prescribed items during PY exceeds 50 k - then diff is taxable

Question 10

What are the prescribed items of gift (movable property)

Answer 10

1. Shares
2. Securities
3. Drawing
4. Picture
5. Jewellery
6. Sculptures
7. Archaeological collections
8. Other works of art
9. Bullion

being capital asset of the taxpayer.

Question 11

Who are the members of a HUF

Answer 11

senior-most male member is called the karta
his sons, grandsons, and great-grandsons
their wives and unmarried daughters

Question 12

Are receipt of any other movable item other than prescribed item for no consd or low consd considered as gift under IFOS

Answer 12

No

e.g gift of TV, Car, phone , etc