Gift from Son to Mother

Save Share

This query is : Resolved

Quick Summary

A non-resident Indian son gifted his mother Rs. 6 Lakhs from his Indian bank account. Gifts received from relatives are generally exempt from income tax in India under Section 56(2)(x) of the IT Act. While not legally taxable, it is advisable to declare such gifts in the mother's income tax return to preempt any future queries from the tax authorities.

NK1976

NK1976 (Querist)

14 December 2022 A non resident Indian son gave gift to his mother of Rs.6 Lacs.
The gifted transaction has been done from son's NRI bank account in India.

1. Is it taxable in the hands of the mother?
2. Should the gift be shown in the income tax return of the mother?

Reply back Urgently

Thanks,
N K

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 December 2022 1. No. Being 'RELATIVE' as per sec. 56(2)(x) of IT act...
2. Advisable...

Message likes : 1 times

NK1976

NK1976 (Querist)

14 December 2022 What can happen if it is not shown in the income tax return?
Suppose if we show in income tax then we should pay tax on gift amount more than Rs.50000.
Please suggest.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 December 2022 Better to declare the gift in ITR, to avoid any future query.
The tax liability over the gift arises only in case of non-relatives, as per IT act.
Here the duo son & mother are treated as relatives, under IT act, so no tax liability over the gifted amount, i.e. it is tax-exempt.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now