India Real Estate Monitor

Property received as gifts from non-relatives on or after October 1 will attract income-tax in the hands of the donee. This new regime for taxation of gifts of property (immovable property or any other property) will come into force from Thursday. Any person who receives a property as gift on or after October 1 must pay the income-tax due on the value of the gift and disclose the taxable value of such property in the return of income for assessment year 2010-11 and subsequent years, the Central Board of Direct Taxes said in a statement here today. The tax incidence will arise only when the value of the property exceeded Rs 50,000. However, gifts received from a person who is a relative, on the occasion of marriage of the individual, under a will or by way of inheritance, in contemplation of death of the donor or from any trust or institution registered with the income tax authority will not be subject to income-tax, the release added.