Gift

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AMIT BHANDARI (Querist)

16 June 2016 RESPECTED SIR,
A PERSON MR. A HAS ONLY SALARY INCOME OF RS. 370000. HE HAS A SON MR. X WHO HAVE NO SOURCE OF INCOME. IF MR. A GIFT RS. 120000 TO HIS SON MR. X THEN WHAT IS THE EFFECT OF SUCH CASH GIFT OF RS. 120000 ON MR. A AND MR. X.. ALSO WHAT INCOME SHOULD MR. A SHOWS IN HIS RETURN.

Rupesh Jain

Rupesh Jain (Expert)

16 June 2016 income from gifted amount will be add in the father income u/s 64(1) if son in minor then Rs. 1500 will dedcut under this section in father computing taxable income.

AMIT BHANDARI

AMIT BHANDARI (Querist)

16 June 2016 What if Son is Major... What amount of income Father should show in return?

Rupesh Jain

Rupesh Jain (Expert)

16 June 2016 income of gift amount will be added as it is father income there is no relaxation for that.

AMIT BHANDARI

AMIT BHANDARI (Querist)

16 June 2016 That mean Mr. A will show income of Rs. 370000 in his return Income.. No relaxation on amount which he gifted to his Son Mr. X.

Then Is there any process for shifting taxable income.

Rupesh Jain

Rupesh Jain (Expert)

16 June 2016 sir, i am asking the income from the gifted amount, not the gifted amount. any income earn by son on gift amount will include in father income, for example Rs. 120000/- son earn 3% intt in saving a/c in year then 3600/- will add in the father income. there is no addition of Rs. 120000/- its tax free for son under the income tax act. its relative gift.

AMIT BHANDARI

AMIT BHANDARI (Querist)

16 June 2016 Ok.. that mean Father show income of Rs. 250000 as his income in return. not 370000

Thanks Sir for your Advise

Rupesh Jain

Rupesh Jain (Expert)

16 June 2016 No, its will be Rs. 370000+ any income earned on the gifted amount by son=

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