Gift/loan from wife's father

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This query is : Resolved

Kiran (Querist)

22 July 2014 Dear Expert,

I have taken some amount(more than Rs 50000/-) from my wife's father (father-in-law) for household use.

Will it be taxable for me?
Where to show this amount in IT return form?
Is it acceptable to prepare a gift/Loan deed on plain paper?

Please do the needful.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

22 July 2014 Gift received from Father in Law is not taxable in your hand. Prepare a gift deed for record. Gift deed should be prepared on Stamp paper.

Kiran

Kiran (Querist)

31 July 2014 Where to show this amount in IT Return?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

31 July 2014 Show in Exempted Income Sheet under the head others.

Kiran

Kiran (Querist)

01 August 2014 Sorry but
1) As per section 2, any sum of money or any property received from any relative is not covered in defination of "Income"
2) As per section 56, any sum of money or any property received from any relative
is not an "Income from other sources"
3) Section 10 does not cover any sum of money or any property received from any relative

So my query is, if it is not an income at all, then how it should be shown as Exempted Income.

Can you please let me know under which section/rule "any sum of money or any property received from any relative" needs to be show as Exempted Income?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

01 August 2014 Some gifts are taxable some gift are not taxable. Taxable Gifts are taxes as Income from Other sources. Therefore exempted gifts are to be shown under Exempted Income as per my understanding.

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