The Ministry of Women and Child Development has also requested Ministry of finance for amendment to section 64 of the Income Tax Act,1961 for not including income arising from the asset transferred for inadequate consideration by an individual to his wife or son’s wife.
As informed by the Central Board of Direct Tax (CBDT), Department of Revenue, under the existing provisions of the Income Tax Act,1961, any sum of money received by a person without consideration is liable for taxation if the aggregate value of such sum exceeds Rs.50,000. Similar provisions exist for taxation of receipt of an immovable property or specified property without consideration or inadequate consideration. However, these provisions are not applicable to receipts of any sum/ immovable property/specified property by an individual from following relatives:¾
(i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual;
(vii) spouse of the person referred to in (ii) to (vi) above.
Therefore, receipt by women of any sum/immovable property/specified property without/inadequate consideration from the relatives under the existing provisions of the Income tax Act, 1961 are not taxable.
The above Information was given by Minister of State for Women and Child Development, Smt. Maneka Sanjay Gandhi in reply to an Starred Question in the Rajya Sabha, today.
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NB/PS
