Celebrity Baby Shower Gift

I understand as under:

Section 56 - Income from Other Sources:

...................................................

(vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,

(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;

(b) any immovable property,

(i) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;

(ii) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consi-deration;

(c) any property, other than immovable property,

(i) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property;

(ii) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration :

Provided that where the stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-section (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far as may be, apply in relation to the stamp duty value of such property for the purpose of sub-clause (b) as they apply for valuation of capital asset under those sections :

Provided further that this clause shall not apply to any sum of money or any property received

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(c) under a will or by way of inheritance; or

(d) in contemplation of death of the payer or donor, as the case may be; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Explanation.For the purposes of this clause,

(a) assessable shall have the meaning assigned to it in the Explanation 2 to sub-section (2) of section 50C;

(b) fair market value of a property, other than an immovable property, means the value determined in accordance with the method as may be prescribed;

(c) jewellery shall have the meaning assigned to it in the Explanation to sub-clause (ii) of clause (14) of section 2;

(d) property means

(i) immovable property being land or building or both;

(ii) shares and securities;

(iii) jewellery;

(iv) archaeological collections;

(v) drawings;

(vi) paintings;

(vii) sculptures; or

(viii) any work of art;

(e) relative shall have the meaning assigned to it in the Explanation to clause (vi) of sub-section (2) of this section;

There is no specific provision inthe underlying Section to include CAR in Income from other sources

Is the said List of property specified in the said Section exhaustive or inclusive i.e. can we exclude Car from this section as there is no specific mention of the same in the Section or somewhere in the Act.

CAR is not money or

(i) immovable property being land or building or both;

(ii) shares and securities;

(iii) jewellery;

(iv) archaeological collections;

(v) drawings;

(vi) paintings;

(vii) sculptures; or

(viii) any work of art;

 

 

Should it still be taxed under section 56?

by Liz Pulliam Weston Money Talk

Dear Liz: I am a 49-year-old single father with two boys, 17 and 12. I had my own business for five years, which I finally gave up last year. I have credit card debt of about $68,000. My credit score is still good and all payments are current. I do not own a house, and I do not own much personal property either. I found a job a few months ago, and with that, I can still make payments every month. but I just figured out that it will take me about 40 months to pay them all off. I am considering filing for Chapter 7 bankruptcy. My thinking was to file for bankruptcy now to wipe out the credit card debt, so that I can start saving for my retirement and the boys’ college. but I also heard that some student loans are based on parents’ credit, which worries me. I have a car in good condition, but I will need to replace it in a few years because it is 15 years old. I also would like to start another business on the side, which will be easier if I still have credit. I’ve read a lot of advice on the Internet, but I’m not sure whether I should file for bankruptcy. What do you advise? Answer: That you not rely on Internet opinions when making a decision this monumental.you really need to speak to a bankruptcy attorney about your individual situation. What you’ll probably discover is that you’re not a good candidate for bankruptcy, since you’re able to pay off your debt in less than five years. People who are allowed to file for Chapter 7 bankruptcy liquidation typically have far more debt than they could repay in that time period.There’s another reason you probably shouldn’t file: you need to learn how to live within your means. you seem to be eager to start the borrowing cycle all over again, even though it ended in disaster last time.Business-related debt is good debt only if it helps you get ahead. If you use credit just to keep a failing business afloat, it’s bad debt.‘Exit fee’ may be in the fine print Dear Liz: My wife and I are rolling over our bank certificates of deposit to another investment company to consolidate our holdings. two weeks before the CDs’ maturity date, we notified the bank and filed the necessary papers. The bank didn’t complete the rollover for two months and then withheld $50 for something it called a “Trustee to Trustee Transfer Fee.” What is this, and can the bank make this charge? Answer: Such “exit fees” are a way for banks and brokerages to nip an ounce of extra flesh from departing customers. Many financial institutions charge them, but they often aren’t well disclosed and few investors know to ask about them. You’ll know better next time.More on federal gift-tax rules Dear Liz: I’m an estate-planning attorney and want to expand on the answer you gave to the parent who wanted to give her children money for their educations or a car but was worried about gift taxes. Your explanation of the federal rule was accurate — only gifts of more than $13,000 per recipient have to be reported, and gift tax isn’t owed until amounts over that exclusion exceed $1 million — but state laws vary. (California levies no gift tax.) In addition, the $13,000-per-person annual exclusion and the $1-million lifetime exclusion is available for each giver, so a married couple could give $26,000 without reducing their lifetime exemptions. also, tuition is not considered a gift if paid directly to the school, irrespective of the amount, so the giver could offer to pay tuition directly and then give money separately for a car. Finally, 529 college savings plans are an excellent way to save for a child’s higher education and are often preferable to giving money directly to the children. Answer: Thanks for the additional information. College savings plans allow people to contribute up to five times the annual gift exclusion amount at one time, meaning generous parents or grandparents could stow $65,000 into a 529 plan without having to file a gift tax return (as long as they make no other gifts to the recipient in that five-year period).Liz Pulliam Weston is the author of the book “Your Credit Score: Your Money and What’s at Stake.” questions for possible inclusion in her column may be sent to 12400 Ventura Blvd., no. 238, Studio City, CA 91604, or via the “Contact Liz” form at www.asklizweston.com. Distributed by no more Red Inc.

Before filing for bankruptcy, try living within your means

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