CASH RECEIVED FROM MY WIFE AS GIFT

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This discussion addresses how to treat cash gifts received from a son and wife for tax filing in India. The received amounts are generally exempt from tax in the recipient's hands. It also clarifies that SFT004 and SFT005 entries in Form 26AS might relate to significant cash or term deposits made by the wife, potentially requiring a revised tax return for her if not previously declared.

sundeep

sundeep (Querist)
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02 August 2020 On two occasions during FY19-20, my son gave me hard cash first time Rs.1,55,000/- by breaking his term deposit in a nationalized bank in India from residential account (prior to converting the account to NRO) and removing cash and giving it to me and second time my wife gave hard cash Rs. 1,25000/- to create FD in my name as I have turned senior citizen in November 2019. she receives money in her bank account from our son in the US. (Total receipt Rs.280000/-)
I want to know how to treat these amounts to tax and file my return (ITR3 released on 1.8.2020). I have already filed my wife's tax return (ITR1) and the very next day IT dept modified Form 26 AS for my wife. They are now showing SFT004 (cash deposit) and SFT005 (term deposit) in her Form 26AS and SFT004 in my Form26AS.

CA KARAN SINGH

CA KARAN SINGH (Expert)
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02 August 2020 Write to us at cakaransingh01@gmail.com. Your query will be answered comprehensively and altruistically.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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04 August 2020 Cash received from your son & wife is exempt in your hands.
Regarding SFT004, in her 26AS, she might have deposited 10 lakhs or more in her saving accounts in one of more banks. during the FY 19-20.
Regarding SFT005 in her form 26AS, she might have made new time deposites of Rs 10 lakhs or more in one or more banks during FY 19-20

So you will have to file return of your wife declaring income accordingly. If you haven't mentioned the income based on the the SFT-004 & sft-005, it is advisable to revise the return of your wife.

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