Gift
This query is : Resolved
28 July 2011
mother(salaried) gave gift to her child of around Rs 40,000 in any financial year.
since it is less than Rs50,000 and son has not to pay tax for that gift..
but my question is that whether
"The gift giver(mother) can claim exempt upto Rs40,000 or she has to pay the income tax for the gift amount ?"
please tell urgent as the date of filing is close
thanks
since it is less than Rs50,000 and son has not to pay tax for that gift..
but my question is that whether
"The gift giver(mother) can claim exempt upto Rs40,000 or she has to pay the income tax for the gift amount ?"
please tell urgent as the date of filing is close
thanks
28 July 2011
No tax implication on same. Even if the amount was in excess of Rs 50000/- no tax liability on son. Son dont have to pay any tax on such gift also the mother dont get any benefit from tax point of view by giving gift.
28 July 2011
Fully Exempt from tax.
Gifts from relatives :-Gifts received from any relative, as defined under the Act, is not taxable. Relatives include spouse of the individual; brother or sister of the individual; brother or sister of the spouse of the individual; brother or sister of either of the parents of the individual; any lineal ascendant or descendant of the individual; any lineal ascendant or descendant of the spouse of the individual; and the spouse of the person referred to as aforesaid.
Documentary Evidence:-Gifts received are quite prone to litigation. Hence, it is prudent to maintain documentary evidence in respect of the gifts received, to avoid any dispute with tax authorities at a later stage. This is particularly relevant in case the gift amount is substantial and also where it is received from relatives. In case of gift of money received from a relative, it is advisable to have gift deed/letter of understanding exchanged and kept in records by the recipient of the gift for future reference.
Gifts from relatives :-Gifts received from any relative, as defined under the Act, is not taxable. Relatives include spouse of the individual; brother or sister of the individual; brother or sister of the spouse of the individual; brother or sister of either of the parents of the individual; any lineal ascendant or descendant of the individual; any lineal ascendant or descendant of the spouse of the individual; and the spouse of the person referred to as aforesaid.
Documentary Evidence:-Gifts received are quite prone to litigation. Hence, it is prudent to maintain documentary evidence in respect of the gifts received, to avoid any dispute with tax authorities at a later stage. This is particularly relevant in case the gift amount is substantial and also where it is received from relatives. In case of gift of money received from a relative, it is advisable to have gift deed/letter of understanding exchanged and kept in records by the recipient of the gift for future reference.
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