In India, asset transfers, whether through sale, exchange, or gift, are typically treated as capital gains and taxed in the year the transfer takes place. Such transactions must be reported in ITR-2 or ITR-3, depending on whether the income is classified as capital gains or business income. है.
Tax filing rules: As tax filing season starts, many taxpayers are discovering that gifts -- often seen as informal financial exchanges -- can carry significant tax implications. From cash transfers to property and shares, the Income Tax Department is tightening scrutiny, and even seemingly harmless transactions may need to be reported.
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