can gift received be treated as Capital receipt
This query is : Resolved
PRADEEP PAL
(Querist)
10 December 2009
case : - Mr. A has received Rs. 29600/-
from his relatives as gift and
added to his capital account
query: - in clause 13 (e)of Form 3cd can we
write same amount as capital
receipt ?
from his relatives as gift and
added to his capital account
query: - in clause 13 (e)of Form 3cd can we
write same amount as capital
receipt ?
16 December 2009
Gift received is covered under the head income from other sources and not capital gain
PRADEEP PAL
(Querist)
16 December 2009
Respected veena madam,
i am not considering that gift as capital gain
my query is about whether the gift received can be treated as capital receipt
i am not considering that gift as capital gain
my query is about whether the gift received can be treated as capital receipt
18 July 2024
Yes, the gift received by Mr. A from his relatives can be treated as a capital receipt. In the context of income tax filings, particularly in Form 3CD, which is used for audit report under section 44AB of the Income Tax Act, 1961, Clause 13(e) specifically pertains to "Capital Receipts."
According to the income tax provisions:
- **Capital Receipts**: These are receipts that are not revenue receipts but instead relate to capital items such as gifts, loans, capital contributions, etc. Gifts received from relatives are generally treated as capital receipts unless they fall under specific exemptions like those covered under Section 56 of the Income Tax Act.
- **Treatment in Form 3CD**: In Clause 13(e) of Form 3CD, you are required to disclose all capital receipts. Since the gift received by Mr. A from his relatives and added to his capital account qualifies as a capital receipt, it should be disclosed under this clause.
### Conclusion:
Yes, you can write the amount received as a gift from relatives and added to Mr. A's capital account in Clause 13(e) of Form 3CD as a capital receipt. Ensure that you accurately disclose all relevant details in accordance with income tax laws and guidelines to comply with reporting requirements.
According to the income tax provisions:
- **Capital Receipts**: These are receipts that are not revenue receipts but instead relate to capital items such as gifts, loans, capital contributions, etc. Gifts received from relatives are generally treated as capital receipts unless they fall under specific exemptions like those covered under Section 56 of the Income Tax Act.
- **Treatment in Form 3CD**: In Clause 13(e) of Form 3CD, you are required to disclose all capital receipts. Since the gift received by Mr. A from his relatives and added to his capital account qualifies as a capital receipt, it should be disclosed under this clause.
### Conclusion:
Yes, you can write the amount received as a gift from relatives and added to Mr. A's capital account in Clause 13(e) of Form 3CD as a capital receipt. Ensure that you accurately disclose all relevant details in accordance with income tax laws and guidelines to comply with reporting requirements.
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