Gift income

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This query is : Resolved

pankaj (Querist)

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)

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)

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)

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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