Gyansagars

Gifting somebody is a common norm followed since prehistoric ages. Till date, gifting is considered a healthy and courteous habit. It is a way of expressing your gratitude. In this article, we will talk about income tax which is applicable to these high priced gifts. Gifts can be referred as a huge sum of money or property. There are rules and terms for such gifts. We also know the exemptions to these taxations and how we can save on taxes. What gifts are taxable ? Gifts which levy income tax can be in the form of cash or property (jewelry, painting, shares, sculptors, archaeological collection, gold/silver bars etc.). Gifts can also be in the form of buildings/ land (except agricultural land). Hence, any other asset apart from this will not have income tax deductions. How does Income Tax Department set the Value of gifts ? The value of the gifts is calculated as such: •Stamp duty value for all immovable property. •Invoice for jewelry, archaeological collecti...

Education is the process of training and developing knowledge, skill and character of students by normal schooling. The GST Act tries to maintain a fine balance whereby core educational services provided and received by educational institutions are exempt and other services are sought to be taxed at the standard rate of 18%. Auxiliary services received by such educational institutions for the purpose of education up to Higher Secondary level is also exempt from GST Other services related to education, not covered by the exemption would be taxed at a standard rate of 18% with full admissibility of ITC for such take services in cases where the output service is not exempt. However, Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities are exempted from GST. Education Services are covered under forward charge. Therefore, GST shall be paid by the supplier of services. Educational Institution means an institution prov...