TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, for the purposes of exemption under section 5(1)(xii) of the Gift-tax Act, 1958, the income derived from the gifted properties during the period of the donees' education could be taken into account in determining what would be a reasonable gift for education.
Analysis: The valuation scheme under the Gift-tax Act first requires the market value of the gifted property to be determined under section 6, and the tax is then computed on that basis. Once the value of the property gifted has been so ascertained, the Act does not contemplate a further addition or adjustment by reference to income generated by the gifted property for the purpose of working out the exemption. Section 5(1)(xii), though it allows the officer to consider whether the gift is reasonable having regard to the circumstances of the case, does not justify treating the income from the gifted corpus as an additional factor for reducing the exemption after the corpus has already been valued under section 6.
Conclusion: The income from the gifted properties was not a relevant circumstance for determining the reasonable amount of gift allowable as exemption under section 5(1)(xii); the question was answered in the affirmative, in favour of the assessee.
TaxTMI 
TaxTMI 
