There was the famous case of Sachin Tendulakr receiving Ferrari as a gift and refusing to pay tax...If celebrities can kick up a fuss inspite of having enough money , one can understand the plight of a common working man. In Sachin's case the tax was paid by whoever gifted the car to him, but for the rest of us sometimes these gifts may seem like a burden..

Thank you Chinmoy. The way in which you clarified the nuances of Taxation made me see the things in a clear and true perspective.

chinmoymukherjee wrote:@Rambabu It is so kind of you! All my pleasure! @Usha Sachin's case involved not any provision of I.T.Act.He sought waiver of Customs Duty which is steeply high in relation to imported cars and other luxury goods.

Yes I stand corrected Chinmoy  thank you :)

chinmoymukherjee wrote:@Usha Frankly I did not mean any correction. Rather I am deeply appreciative of your highlighting the predicament of a commoner vis-a-vis honoring tax laws.There are imports which entail Custom Duty many times over the assessable value of the same making a gift proposition backbreakingly costly reducing it to an avoidably onerous one. About I.T.Act I can say it is a potential minefield for all.Even a former CJI of Supreme Court once expressed his helplessness before it. That's interesting,isn't it?

But does not a gift received from abroad have the same rule as gifts received here ? Apart from that ,now with stricter laws with the IT dept  asking all those who have stashed away black money and those owning properties abroad to declare the same and legalise it,any gift recd from abroad would have to come under the IT rules..doesnt it ?

usha manohar wrote:

chinmoymukherjee wrote:@Usha Frankly I did not mean any correction. Rather I am deeply appreciative of your highlighting the predicament of a commoner vis-a-vis honoring tax laws.There are imports which entail Custom Duty many times over the assessable value of the same making a gift proposition backbreakingly costly reducing it to an avoidably onerous one. About I.T.Act I can say it is a potential minefield for all.Even a former CJI of Supreme Court once expressed his helplessness before it. That's interesting,isn't it?

But does not a gift received from abroad have the same rule as gifts received here ? Apart from that ,now with stricter laws with the IT dept  asking all those who have stashed away black money and those owning properties abroad to declare the same and legalise it,any gift recd from abroad would have to come under the IT rules..doesnt it ?

 

Income Tax rules are same. But customs duty is additional burden when yoi import something- be this purchase or gift.  Obviously import duty is not involved when you procure something inland- purchase of gift. 

The import duties are not many times than assessable values as @Chinmoy suggests. Since 1991-92 these are at the most 30% of assessable value at the entry points. Thus for a Value of Rs 1000 the custom duty will be maximum Rs 300. The lower import duties is one reason why International trade n India has expanded considerably since 1991-92. So even if one has to pay 30% tax he is still getting it at 70% discount !!!

@Vijay

In your wild fury to prove me wrong you are wrong

again.First acquaint yourself with import duty and

Customs duty!