TAX CONSULTING

Introduction: Gift means transfer by one person to another of an existing movableor immovable property made voluntarily
and without consideration in cash or kind, and includes deemed gifts, as provided in the Gift Tax Act, 1958 ("the Act"). Gift
tax is charged in respect of gifts made by a person during the year. Most of the definitions given in the Act are same as those
under the Income Tax Act.

Exceptions: Before making a gift, you are advised to carefully go through the list of exemptions given below:

Gifts of immovable properties situated outside India
Gifts of movable properties outside India, unless the donor - being an individual, is a citizen of India and is ordinarily a resident of India, or not being an individual, is Indian resident during the year of gift
Gift of foreign currency by an NRI to a resident relative, of convertible foreign exchange, remitted from abroad
Gift of a foreign exchange asset by an NRI to a relative
Gift by an NRI out of the balance in his Non-Resident (External) Account
Gift of Savings Certificates issued by the Central Government, which the Government notifies as exempt
Gift of Special Bearer Bonds, 1991
Gift of Capital Investment Bonds by an individual or an HUF subject to a maximum limit of Rs. 10,00,000 per year
Gift of Relief Bonds by the original subscriber to such bonds who is an Individual or an HUF
Gift by an NRI of certain bonds specified by the Central Government, which have been subscribed in foreign currency
Gift to any Government or any local authority
Gift to any fund or institution established for charitable purposes
Gift to any notified gurudwara, temple, mosque, church or any other place of worship
Gift not exceeding Rs. 1,00,000 to a dependent relative, on the occasion of marriage of such relative
Gift under a will
Gift in contemplation of death
Reasonable gift to children for their education
Reasonable gift of bonus, gratuity, or pension by an employer to an employee or the dependants of a deceased employee
Gift to any person in charge of Bhoodan or Sampattidan movement as the Central Government may notify

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Gift Tax out: The fourth round of changes to the Union Budget have brought great satisfaction to the taxpayers.The greatest
gift came in the form of withdrawal of tax on gifts fully. In an earlier proposal, the tax was shifted from the donor to the
donee.Interesting to note that the total cost of collecting tax on gifts was more than the revenue generated from it. The
Finance Minister has been kind enough to scrap the tax fully.

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