Sanjay, a resident of India received gifts during the financial year 2021-22 as follows: (d) Shares received from his father, the fair market value (i.e. value as per stock exchange) of the shares on the date of gift was

CS Professional · Advanced Tax Laws · PYQS · December 2022
Sanjay, a resident of India received gifts during the financial year 2021-22 as follows: (d) Shares received from his father, the fair market value (i.e. value as per stock exchange) of the shares on the date of gift was ₹ 3,00,000 You need to advice Sanjay with regard to tax treatment of each of the above item and calculate the total taxable value of the gifts in the hands of Sanjay for the assessment year 2022-23.

Answer & Explanation:

The tax treatment of Gifts in the hands of Mr. Sanjay will be as follows: Shares received by Mr. Sanjay from his father (FMV of Shares ₹ 300000) will not be included in income of Mr. Sanjay, since father comes under the definition of 'relative'. Gift received from relatives is exempt and not chargeable to tax under the Income tax Act, 1961.

Topics: Income Tax Act

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