My question is : My sister got married on 29/01/2012. Her return of Income is filled till AY 2011-12. Till now, only nominal income is shown in her return of Income. (i.e. Interest Income and Stipend Income etc)
My dad is a lawyer, who regularly files return of income and in AY 2012-13 he filled the Return showing Gross Total Income of more than 8 lacs.
My sister has got almost 5,30,000 /- in cash as gifts during the wedding and reception occassion in total.
Those cash is not yet deposited in bank accounts of her.
Can we deposit that money and start investing in her name for future savings.
The amount of 5,30,000/- seems big to me.
What is the advisable course of action in this case.
18 February 2013
As you must be knowing that gifts received on the occasion of marriage are exempt in the hands of receiver under Section 56(2) of IT Act, 1961.
Though there is no blank exemption under this Section and AO always has the power to enquire about the gifts recd., but I think this is not such a high amount to be worried about. If the gifts are of very huge amount and recd. from the girl's side, then still a case of dowry can be suspected.
But in your case I think there would not be any problem and you can deposit the amount to her Bank Acc. and she can further invest the same.
18 February 2013
In principle i agree with Mitali. However you can take precautions in this regard, by maintaining a list of people from whom you have received the gifts and also maybe request gift deeds to be entered into. While the receipt of gifts itself will not be taxable, the AO may want to probe the ability of the donors who made the gift.
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