15 lacs gift received from relatives in the f.y.17-18 is it

This query is : Resolved

Share Report Follow Query Ask a Query

Anand

Anand (Querist)
Follow

10 April 2018 Respected Sir,
Gift received from relatives in the f.y.17-18 for a sum of Rs.15 Lacs. Is it taxable?

CA NEERAJ SHARMA

CA NEERAJ SHARMA (Expert)
Follow

10 April 2018 GIFT FROM RELATIVE IS EXEMPT FROM TAX.

Following persons would be considered as relative
(a) Spouse of the individual;

(b) Brother or sister of the individual;

(c) Brother or sister of the spouse of the individual;

(d) Brother or sister of either of the parents of the individual;

(e) Any lineal ascendant or descendent of the individual;

(f) Any lineal ascendant or descendent of the spouse of the individual;

(g) Spouse of the persons referred to in (b) to (f

RAJA P M

RAJA P M (Expert)
Follow

10 April 2018 Check out the relatives definitions as following... Otherwise the GIFT is taxable exceeding 50k***

Let us understand the definition of relatives as per the Income Tax Act, for gift and under FEMA.

As per the Income Tax Act: Section 2(41), “relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.

As per Gift tax:Any ‘Relative’ means as per Section 56(2),

Spouse
Brother or sister of individual or of spouse
Brother or sister of either parents
Lineal ascendant/descendant of individual or of spouse
Spouse of relatives mentioned in 2. to4.
As per FEMA: FEMA relies on the definition in the Companies’ Act. As per section 2 (77) of the Companies Act 2013, “Anyone who is related to another if

they are members of a Hindu Undivided Family (HUF); or
they are husband and wife ; or
as may be prescribed. The Rule 4 of the Companies (Specification of definitiondetails) Rules, 2014 lists the relatives as:
Father, Mother
Son, Daughter and their spouse
Brother and Sister

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now