05 August 2016
Q1. Is there a place where this amount could be declared under relevant Tax Laws? Q2. I have not found any specific place where this amount can be filed in ITR-1, and that it could be selected to be stated as Marriage Gift. It beats me as to how can anyone get money and not be able to declare it under the available laws? Q3. I have the complete list of names and amounts each have gifted, whether cash, cheque or kind. What is the mechanism to declare gifts in "Kind" like valuables (silver, gold etc)? Q4. Some experts outside this forum advised "no need to declare", some said it would be good if we did (That is correct and sensible approach), some said "declare in para 27 of ITR-1 " but they could not answer how, since in ITR-1 there is no choice of section under which exempt from tax could be stated, and surprisingly even the Bangalore IT customer support had to say, do not put. It is understandable that IF this cash, or jewelry were to be converted to cash and all the money (cash and kind), were fixed in a bank or fund, the interest would be taxable. If this decision is not taken within hours of the marriage, there could be cash lying for days, may be months and could be years without having had been fixed. (a) Is one allowed to keep this cash and jewelry aside with list? (b) If one has spent this cash in everyday expenditure, where do we declare this cash OUT? (c) Would this remain as an unaccounted money? (Does this not keep a huge gaping hole for miscreants?)
Seriously need these answers. Not many seemed to speak or answer or have an answer for this.
06 August 2016
1 Declare it under exempted income and keep with you the details of marriage gift received. 2 You can only declare under exempted income and have the supporting documents of marriage. 3 Include the market value of the gift in king received. 4 Declare under exempted income and have details of gift received which is the best practice. Declare and do what ever you want on it.
06 August 2016
Thanks a lot Seetharaman. I see this as a very strong support to clean living. In a discussion between some people and me, this is what I contested - Declare! Let the tax dept decide how to deal with it, but if a law is casted, whatever might be the intention, it cant be further confusing or made into a bullying weapon, double edged idea of exemption or in this case, a HADDY DAY like a Happy Hour. I have done exactly as you said. Have a list. The most critical input that comes in so fast on this portal given by you, is the valuation. Fortunately, these are reputed stores with registered sales, and easy to get the value. In some cases it may cost us more to get the valuation than the cost of the item, but if sentiments and emotions rule the common sense, I guess we will do it for the sake of children. This has come in good time.
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