Festive Season Tax Planning: Gifts, Donations, and Real Estate Purchases
Tax on gifts, Charitable Donations, Taxation on real estate purchases
Tax PlanningFestive SeasonGiftsDonationsReal Estate PurchasesIncome Tax ActSection 80gSection 80cReal EstateSep 25, 2024
When gifts are exchanged for a small amount as a token of appreciation, they typically do not fall under the scrutiny of tax authorities. However, in the case of expensive items, it is important to be aware that there may be tax implications and potential obligations to pay taxes on such gifts.
Gifts valued over Rs 50,000 from non-relatives must be reported as income and are subjected to taxation based on your applicable income tax slab rate, varying from 5% to 30%, in accordance with your total income. It's essential to note that the classification of
Frequently Asked Questions
What is the tax implication of receiving gifts during the festive season?
Gifts valued over Rs 50,000 from non-relatives must be reported as income and are subjected to taxation based on your applicable income tax slab rate.
Can I claim deductions for donations made to charitable institutions during the festive season?
Yes, you can claim deductions for donations made to specified institutions under Section 80G of the Income Tax Act.
What is the tax benefit of buying a residential property during the festive season?
You can claim a deduction of up to Rs 1.5 lakh on the principal repayment of home loans under Section 80C.
Has the long-term capital gains tax rate changed in the Union Budget 2024?
Yes, the long-term capital gains tax rate has been decreased from 20% to 12.5%.
Can I claim indexation benefits for real estate dealings in the Union Budget 2024?
No, the indexation benefits for real estate dealings have been eliminated in the Union Budget 2024.
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