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Gift: tax exemption and guidance of Sages to prevent wealth destruction

 Section 10(Cha) of Income Tax Act, 2058- Exempt Gifts other than related to Employment, Business and Investment.

Since all 3 exceptions are economic activities and any transactions thereof couldn't be termed as Gift in true sense. Section 2(Yana) defines Gift as something obtained without any return from the transfer. Which is in line with leaving the non-economic activities outside taxation. 

However, Income Tax Manual,2066 (4th amendment) went to such an extent to allow dowry tax exempt. 

Taxation also functions as a tool to allow accumulation of wealth to some people and not so for others. At the time of economic depression, wealth should be transformed into capital make it productive, at other times it should be humanitarian. Since, both are humanitarian activities at different form. However, wastage of wealth by letting it used in 5 things Parikshit Maharaj allowed for Kali to reside (Source: Mahabharata) in a sense to UNMAD the vulgar exuberance of human existence, both the person and the nation that allowed it will fail. 

Income Tax Act prescribes no such restrictions on gift. We being the land of Vedas, Tantras, Dhamma and many more for thousands of years should naturally seek knowledge from our ancestors and their wisdom. 

They are clear about giving Gifts and its limits more than we are. They allowed or suggested Gifts for most beneficent distribution of wealth only.

Some ChatGPT answers (who owns time enough to go through those text again ):

Merit of Gifts:

Shatapatha Brahmana (11.1.6.1)

"He who gives liberally gathers virtue. He who eats alone consumes his own sin. He who gives to a worthy recipient obtains great rewards."

Yajnavalkya Smriti (1.208)

"A gift given to a deserving person at the proper time and place, with devotion, brings great merit."

Mahabharata (Anushasana Parva 58.9)

"A gift given to a needy person without expectation of return is the highest form of charity."

Recipient of Gift:

(a) Manusmriti (4.226-229)

"One should give to a learned and virtuous Brahmin, not to an ignorant one. A gift to a selfless person grants endless merit, while a gift to an undeserving person leads to no reward."

(b) Yajnavalkya Smriti (1.209)

"A gift given to a learned Brahmin (or a virtuous person) never goes to waste; it brings great merit and ensures prosperity."

(c) Parashara Smriti (8.34)

"The recipient of charity should be of a pure heart, dedicated to dharma, and free from deceit, for only then does charity bear fruit."

(d) Bhagavata Purana (7.15.36)

"Gifts should be given to those who do not seek them, who are content, and who engage in spiritual pursuits. Such gifts purify the giver’s heart."

(e) Chanakya Niti (15.9)

"A gift to a scholar is like watering a tree that bears fruit, while a gift to a fool is like watering a dead tree."

(f) Vidura Niti (Mahabharata, Udyoga Parva 33.48)

"Charity should be given to those who are grateful, wise, self-controlled, and engaged in righteous duties. Giving to the ungrateful is like planting seeds on barren land."

(g) Sukra Niti (4.5-6)

"One should donate to those who uphold truth, are free from deceit, and who work for the welfare of society. A gift given to a dishonest or wicked person brings ruin."

(h) Hitopadesha (2.8)

"A gift given to a scholar multiplies knowledge; a gift given to a warrior strengthens protection; a gift given to the poor removes suffering."

The great sages only at times hold poor for gift. May be they are for Charity than Gifts. Gifts may be the business of wealthy people. Inherent in human nature to give when one have sufficient and free oneself from burden of holding too much. But the wealth is not that much a thing to waste even if something is privately held. (In this regard property in relation to individual family and sometimes a person, such idea has already been established by Manu himself. So, they are not any sense living in primitive society but we can't say say they give equal rights to all to own property. Though they are so much aware about wealth creation and preservation, anyone without any inhumane intention can create society    by those laws at any time and any place with great joy in heart of everyone involved.)


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