Changes in recent Budget relating to gifts receivable
BH. SREENIVAS
(Querist) 23 July 2009
This query is : Resolved
1.Pls let me know about the changes in provisions relating to gifts receivable from relatives and others in the recent Finance Bill 2009?
2. Can we claim higher HRA in ITR 1 than that is shown in Form 16 , if rent paid is really more? what will be the consequences if claimed higher HRA to get refund out of TDS deducted?
A V Vishal
(Expert) 23 July 2009
The Major change in provisions relating to gifts is including gifts in kind also in the ambit of gifts, cash gifts were being taxed earlier if the gift were from persons other than relatives and exceeded Rs 50.000/-, now all gifts whether immoveable property, jewellary etc.. received as gifts from persons other than relatives will be taxed, the value of such gift will be the market value of such thing on the date of the gift.
HRA has to be calculated under the provisions of s.10(13)(A) of the Income Tax Act. If the employer has calculated the HRA wrongly you can recalculate the same while filing the return, however, if it is only for refund then it is not advisable to make wrong declaration as it would land you in trouble.
