ITAT Mumbai Rules Rs 20 Lakh Gift from UAE Brother Exempt from Tax

Sachin | Last updated: 21 August 2024

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The Income-Tax Appellate Tribunal (ITAT) Mumbai has ruled that a Rs 20 lakh gift received by a taxpayer from his brother residing in the UAE is exempt from tax. This decision clarifies that gifts from close relatives, specifically brothers, are not taxable under Section 56(2)(x) of the Income-Tax Act, even if they exceed Rs 50,000.

1. Significant Ruling by ITAT Mumbai Bench The Income-Tax Appellate Tribunal (ITAT) Mumbai bench ruled that a gift of Rs 20 lakh received by a taxpayer from his non-resident brother in the UAE is not taxable. 2. Exemption of Certain Gifts Indian tax laws exempt certain gifts from taxation, particularly those received from close relatives. 3. General Taxation Rule Under the Income-Tax Act, gifts exceeding Rs 50,000 are usually taxed as 'income from other sources' at the applicable slab rat

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Sachin

Finance Manager

Im passionate about accounts and enjoy playing music on the keyboard. When Im not working, youll find me exploring new melodies or diving into the intricacies of Excel. I love solving complex spreadsheets, and Im always up for a challenge that combines creativity with precision.

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