However, the income generated later say by way of rent on a house inherited by you would be taxable.
Sum of money received without consideration by an individual or HUF is chargeable to tax if the aggregate value of such sum received during the year exceeds.
( a ) Spouse of the individual; ( b ) Brother or sister of the individual; ( c ) Brother or sister of the spouse of the individual; ( d ) Brother or sister of either of the parents of the individual; ( e ).
The provisions relating to gift tax have been dealt with under Section 56(2 x) of the Income-tax Act, 1961.
If the aggregate value of monetary gift received during the year by an individual or HUF exceeds.Gifts received from relatives are not charged to tax.50,000 and discount code for railcards 2017 the gifts are not covered under the exceptions prescribed in the preceding FAQ, then gifts whether received from India or abroad will be charged to tax.The tax on gifts needs to be paid by way of advance tax / self-assessment tax before the tax return is filed by the person receiving the gift.4, gift Tax was also not applicable in case of the transfers of immovable property that were situated outside the country.Gift Tax Rates, gift Tax Act was introduced in 1958, amended in 1987 but discarded in 1998.
A gift of money, therefore, to your sister will also have no tax implication for either of you.
In this article, we take you through gift tax provisions in income tax law and deal with the following topics.
Property received from relatives.These provisions have been briefly captured in the form of the table below: Kind of gift covered, monetary threshold.Also, cash or gifts in kind (presents) from non-relatives are not taxable up to a value of Rs 50,000 in a financial year.However, tax authorities often probe gifts to establish the legitimacy of the sources of funds out of which gifts have been given.Property received from a local authority as defined under section 10(20) of the Income-tax Act.Will be charged to tax.NA Individual Any person Marriage best gifts for 11 year girl 2014 of Individual Any person Any person Under a will or by way of inheritance Any person Individual In contemplation of death of donor or payer Any person Local authority Panchayat, Municipality, Municipal Committee and District Board, Cantonment Board NA Any.Property received from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10( 23C ).Finish your E-filing for free with ClearTax ClearTax makes it very easy to E-File your ITR E-Filing takes only a few minutes Our experts help you on live chat and email Start your Tax Return Now.
Transfer of money to your sister without any consideration will amount to a gift in the hands of your sister.
You will have to report gift value under income from other sources.