For ifos
This query is : Resolved
24 May 2014
sir i am cs executive student i want to kniw in chapter ifos gift recieve from friends and relative its exempt upto 50000. sir this 50000 is exempt from particular person or aggrigate exempt in finacial year
26 May 2014
There is no tax to be paid on gifts received (cash or kind), if the amount of the gift is upto Rs 50,000 in a year. However if the total amount crosses Rs 50,000 . Then you will have to pay the tax on the total amount recieved (not additional). For example – If a friend of yours gifts you Rs 30,000 in a given year, you don’t have to pay any tax on that amount, as its below the limit of Rs 50,000 .
Now suppose you also get Rs 20,000 after that, still you don’t have to pay the tax as the total worth of the gift you got in the year was Rs 50,000 till now (less than the limit of Rs 50,000) . But now, if someone gifts you another Rs 10,000 . Your total gifts in a year is Rs 60,000, so you will have to pay tax on the total amount of Rs 60,000 , not just on additional Rs 10,000 . This Rs 60,000 will be included in your income and you will have to pay tax on this Rs 60,000, as per your tax slab.
2. Any amount received by relatives is not taxable at all
Another rule for income tax on gifts, is that any amount received from specified relatives is totally tax free in the hands of recipient. So if a relative gives you gift in form of cash/cheque or in consideration, you will not have to pay any tax on the amount received.
Following is the list of relations which are considered as “relatives” for this
•Spouse
•Brother or sister
•Brother or sister of spouse
•Brother or sister of either of parents
•Any of lineal ascendants or descendants
•Any lineal ascendant or descendant ofspouse
•Spouse of the persons referred in above points.
So that it does not matter gift received from 1 particular person or more than 1 person.
Now suppose you also get Rs 20,000 after that, still you don’t have to pay the tax as the total worth of the gift you got in the year was Rs 50,000 till now (less than the limit of Rs 50,000) . But now, if someone gifts you another Rs 10,000 . Your total gifts in a year is Rs 60,000, so you will have to pay tax on the total amount of Rs 60,000 , not just on additional Rs 10,000 . This Rs 60,000 will be included in your income and you will have to pay tax on this Rs 60,000, as per your tax slab.
2. Any amount received by relatives is not taxable at all
Another rule for income tax on gifts, is that any amount received from specified relatives is totally tax free in the hands of recipient. So if a relative gives you gift in form of cash/cheque or in consideration, you will not have to pay any tax on the amount received.
Following is the list of relations which are considered as “relatives” for this
•Spouse
•Brother or sister
•Brother or sister of spouse
•Brother or sister of either of parents
•Any of lineal ascendants or descendants
•Any lineal ascendant or descendant ofspouse
•Spouse of the persons referred in above points.
So that it does not matter gift received from 1 particular person or more than 1 person.
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