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Taxation about amount received from father

Dr. Anand Wadadekar (Educationist | Economist | Author) (1023 Points)

12 April 2015

Hello Professionals, Please help with your expertise. My Father sold a house property in Pune in December 2014. He then transferred Rs. 8.5 Lakhs to me to my bank account. I am investing the same in my pvt ltf company as Subscripttion Capital.

Is there any provision in IT Laws under which I can avoid paying Income Tax on this Rs. 8.5 lakhs? Can I show this as a gift received from Father (relative).

If yes, where in the ITR Form should I mention this?

An early reply from experts here will be highly appreciated. Thanks in advance

Dr. Anand Wadadekar

Founder Director & CEO of Discovering Careers India

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4 Replies

SELVAKUMAR (Student) (52 Points)
Replied 12 April 2015

Hi Dr. Anand Wadadekar

No. If the above income, your father paid tax and then transferred the income to you mean not taxable.

SHINY (CA Final Student) (699 Points)
Replied 12 April 2015

As per sec 56(2)(vii) of IT Act, gift received from a relative is not taxable u/h 'Income from other sources'

so you can avoid paying tax on 8.5 lakh if you show it as gift received from a relative-father.

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Dr. Anand Wadadekar (Educationist | Economist | Author) (1023 Points)
Replied 12 April 2015

Originally posted by : SHINY

Thank you Shiny.

Which ITR form should I file then, since I also have salary income too?

As per sec 56(2)(vii) of IT Act, gift received from a relative is not taxable u/h 'Income from other sources'

so you can avoid paying tax on 8.5 lakh if you show it as gift received from a relative-father.

Niral Gangar (Management Consulting Investment Advisory CA Practice) (100 Points)
Replied 13 April 2015

Gift Received from relatives i.e. father is not taxable as rightly pointed out by Ms. Shiny. It is considered as a capital receipt and need not be shown in ITR at all. IT is not clear what incomes are you earning apart from salary. If it is only salary & bank interest then you need to file ITR1