Income tax and gift tax
sudhindra
(Querist) 20 June 2013
This query is : Resolved
Dear experts,
My friend gets salary of Rs 225000/-pa. The company giving a house worth Rs 50lacks with a consideration to work for 5 years. The company will enhance salary of 10laks for one year for five year it will be 50lacks.the Company will say you have to pay income for Rs 10lacks every year for five years, totally for 50 lacks.
If he receives house worth Rs 50lacks as a gift from company what will be the gift tax?
And I agree to pay income tax for 50lacks in 5 years, wht will be the income tax.
Please suggest.
Thanking you all
Rajendra K Goyal
(Expert) 22 June 2013
Consult a local taxation lawyer or CA. For calculating income tax in case of employees, the rate of tax, Age of person, deductions , perquisites, savings and many other factors are considered. If the Company gives you possession at present at discounted rate( Future value x discounting factor at agreed rare of interest) and charge interest on balance amount, you will be getting deductions on the interest paid and the installments as per provisions of IT act and rules.
Anirudh
(Expert) 22 June 2013
Unless one sees the written agreement it is not possible to exactly determine the tax implications. There is every possibility there is vast difference between what is actually stated in the agreement, what your friend told you, and how much you understood from your friend, and how much of that you could effectively communicate here. Therefore, either you paste the agreement here (ofcourse without disclosing the name of your friend or the name of his company) or consult a taxation lawyer.
