Mr. X celebrated his 50th marriage anniversary. On this occasion, his wife received a diamond necklace worth ₹ 5,00,000 from Kishore’s brother. Kishore’s son gifted him a luxurious car worth ₹ 15,00,000, His grandchildren gifted them a new furniture set worth ₹ 3,00,000. Also, he received cash gifts from his friends amounting collectively to ₹ 80,000.
A. Neither Mr. X nor Mrs. X will be liable for tax for any gifts since they have been received on occasion of marriage anniversary.
B. Both are liable to Pay tax on gifts
C. Mr. X will be liable to pay tax on cash gifts only.
D. None is taxable.
Answer:C
Mr. X celebrated his 50th marriage anniversary. On this occasion, his wife received a diamond necklace worth ₹ 5,00,000 from Kishore’s brother. Kishore’s son gifted him a luxurious car worth ₹ 15,00,000, His grandchildren gifted them a new furniture set worth ₹ 3,00,000. Also, he received cash gifts from his friends amounting collectively to ₹ 80,000.
A. Neither Mr. X nor Mrs. X will be liable for tax for any gifts since they have been received on occasion of marriage anniversary. B. Both are liable to Pay tax on gifts C. Mr. X will be liable to pay tax on cash gifts only. D. None is taxable.