Gift from major sister to major brother.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2013 Dear sir,

Can a major sister gift a cash to her major brother from amount received on redemption of NSC ?

Thank You.

Anand

Anand (Expert)
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12 April 2013 A major sister can gift cas to her major brother without the same being considered as income in the hands of the major brother.
The gift can be from the amount received on redemption of NSC.
This is because receipt of gift from a 'relative' which includes sister, is not taxable under the income tax act.
Person giving gift should be prepared with documents showing the source of income, in the event of scrutiny

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2013 Thanks , Anand

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 June 2013 Generally if in a year you receive gift more than 50,000 it is taxable but if the gift is given by a blood relation and other relatives as specified in the Income Tax Act, there is no limit and any amount can be given as gift out of his or her capital and not out of the loan amount taken or borrowed from any other sources.

Since in the present case the sister has given the gift it is not taxable but you have not mentioned any amount of gift. Anyhow I agree with the expert on this matter.

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