Gift tax applicability when a new car received against old c
pooja dedhia
(Querist) 17 February 2014
This query is : Resolved
gift tax applicability when a new car received against old car which was met with road accident while driving – currently my car is met with accident with other car . other car owner has admitted his careless and negligence. My car is insured. Other car owner has given a new branded car from indian dealer . New car's cost is more than the car's WDV. I took the insurance from the company and give this amount to the car owner. My queries is that is this transaction attract the gift tax ? Is income tax caluse applicable?
ajay sethi
(Expert) 17 February 2014
consult your CA
H.M.Patnaik
(Expert) 15 March 2016
The transaction does come under the purview of Gift Tax at all.
