Ashok J
(CA Final)
(880 Points)
Replied 24 October 2014
Hey
Suppose A & B (friends) are resident in india. A's annual taxable income is 12 Lacs. He gifts Rs. 1 Lac to B out of taxable income. Gift deed executed. What is his taxable income ? 11 lacs or 12??.
If it is 12 does it mean, donor doesnt get any benefit in the year of gifting??
How can A get deduction for Gift to B? ( Unless B is a charitable institution registered and eligible for 80G) A's income will still be 12L
B's income will also include 1L gift received from non relative.
In other words gifting to others does not reduce income of donor whether the donee is relative or non relative.
But if the donee is a relative, the gift will not be taxable in his (donee's) hands.
Ashwin
(Arcticle)
(30 Points)
Replied 26 October 2014
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
