TIOL-DDT 1458 · Monday, 4 October 2010 · story 6 of 7

What is GIFT?

NOTED jurist Nani Palkhiwala in his book “Law & Practice of Income Tax” based on numerous judicial decisions, has given a commentary as under :

++ A gift which has the personal element in essence is not income at all.

++ Gift to the office holder by way of remuneration for the office is taxable. But personal gifts given on personal grounds and as personal testimonial or as a token of personal esteem, respect, regard, veneration or to mark an occasion is not an income.

++ A personal gift does not become income merely because it is repeated year after year.