Gifts received from other than family members to be taxed: FBR

ISLAMABAD: Data analysis of Income Tax Returns filed in previous years show that huge amount of non-recurring receipts from un-related persons are transferred in the garb of gifts to avoid incidence of taxation.

In order to discourage this practice of undisclosed receipts, section 39 has been amended through the Finance Act, 2019 to include any amount or fair market value of any property received without consideration or received as a gift in income under the head, “Income from other sources”.

However, gift received from grandparents, parents, spouse, brother, sister, son or a daughter shall not be included in such income. The new provision is subject to sub-section (3) of section 39 which states that an amount received by a person otherwise than by a cross cheque drawn on a bank or through a banking channel from a person holding a National Tax Number shall be treated as income chargeable to tax under the head “Income from other sources”.

This means that gift received by a person is chargeable to tax if gift is not received from grandparents, parents, spouse, brother, sister, son or a daughter of the recipient. However, even if cash gift is received from the relations mentioned above but the same has not been received through cross cheque or banking channel, as the case may be, the amount of gift will still be added in income chargeable to tax under the head, “Income from other sources”.

Bookmark the permalink.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  • RSS Newsnreleases

    • C. Hunter becomes CEO of HomeTrust Bank, President of HomeTrust Bancshares 27-Jul-2021
      ASHEVILLE: HomeTrust Bancshares Inc., the holding company of HomeTrust Bank, announced that C. Hunter Westbrook will assume the positions of... Continue reading The post C. Hunter becomes CEO of HomeTrust Bank, President of HomeTrust Bancshares appeared first on NewsnReleases.
    • Blackwood Partners and Nicola Wealth acquire another industrial land 27-Jul-2021
      TORONTO, ONTARIO: Blackwood Partners and Nicola Wealth Real Estate (NWRE) acquired a 34-acre industrial development site located in Grimsby, southwest... Continue reading The post Blackwood Partners and Nicola Wealth acquire another industrial land appeared first on NewsnReleases.
    • Neles to acquire Flowrox for Eur 40.9 million 27-Jul-2021
      HELSINKI, FINLAND: Neles has signed an asset purchase agreement to acquire the valve and pump businesses of the Finland-based technology... Continue reading The post Neles to acquire Flowrox for Eur 40.9 million appeared first on NewsnReleases.
    • Beatrice Mary Nicholas appointed non-executive director at Cohort Plc 27-Jul-2021
      LONDON, UK: Cohort Plc, the independent technology group, announced the appointment of Beatrice Mary Nicholas as a non-executive director, with... Continue reading The post Beatrice Mary Nicholas appointed non-executive director at Cohort Plc appeared first on NewsnReleases.
    • Stephen Birrell joins Live Company Group board 27-Jul-2021
      LONDON, UK: Live Company Group plc has appointed Stephen Birrell as an independent Non-Executive Director with immediate effect, a news... Continue reading The post Stephen Birrell joins Live Company Group board appeared first on NewsnReleases.