Gift income

This query is : Resolved

pankaj (Querist)
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03 September 2011
I am an individual and received a gift from my relative in cash form Rs.7 lac. Please suggest how I can treat this amount in my income tax return; also suggest the maximum limit of gift income.

CA.E.Deepan Chakravarthy

CA.E.Deepan Chakravarthy (Expert)
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03 September 2011 Gift income from relatives is exempted from tax. Even it is received in any mode. Just put a gift deed to prove before authorities.
Note : Relatives are defined under section 56(2)

Taranjit Singh

Taranjit Singh (Expert)
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03 September 2011 The definition of Relative as per Income tax Act,1961:-

Explanation. — For the purposes of this clause, “relative” means—

(i) spouse of the individual;

(ii) Brother or sister of the individual;

(iii) Brother or sister of the spouse of the individual;

(iv) Brother or sister of either of the parents of the individual;

(v) Any lineal ascendant or descendant of the individual;

(vi) Any lineal ascendant or descendant of the spouse of the individual;

(vii) Spouse of the person referred to in clauses (ii) to (vi);]

Taranjit Singh

Taranjit Singh (Expert)
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03 September 2011 NOw please confirm the Relative from whom you have received the gift, if covered in the above definition.

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