Gift Tax Act, 1958 was an Act of the Parliament of India which was enacted to impose tax on the act of giving or receiving gifts under certain circumstances as specified by the Act.
Video Gift Tax Act, 1958
Charges of Gift Tax
As per the Gift Tax Act, the gifts that exchanged hands post 1 April 1958 were subject to taxes as mention in Schedule I. Post 1 April 1987, this was amended to the rate of 30% (Thirty percent) and included gifts that were made in that particular Assessment Year. On 1 October 1998 however, the applicability of Gift Tax ceased to exist.
As per the Gift Tax Act 1958, gift (in the form of cash, draft, check or others) is an excess of Rs. 50,000/- received from one who doesn't have any blood relations with the donee, were taxable. However, from 1 October 1998, Gift Tax got demolished and all the gifts made on or after that date were Tax-free. But in 2004, the Gift Tax Act was again renewed partially, and a new provision was inaugurated in the Income Tax Act 1961 under Section 56 (2). According to Gift Tax Act, 1961 the gifts received by any individual or HUF more than INR50,000 (US$770) in a year would be taxable.
Maps Gift Tax Act, 1958
Exemptions
There were certain exemptions that were allowed under the Gift Tax. In case of the exchange of gifts between blood relatives, irrespective of the value of the gift, Gift Tax was not applicable. Gift Tax was also not applicable in case of the transfers of immovable property that were situated outside the country. Gifts that were received from relatives for marriage, including gifts to the daughter in law from the bridegroom's parents, and gifts to the son in law from the bride's parents were also exempt from tax. Gifts received through a will or through inheritance as well as gifts to parents from their NRI sons and daughters through their NRE account were also under the Gift Tax exempt list.
References
Source of the article : Wikipedia
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