Gift received from my son by bank

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This query is : Resolved

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A son gifted his mother Rs 500,000, and now she wishes to gift the same amount to him. The query explores the taxability of this second gift for both the son and the mother. It clarifies that gifts between specified relatives are generally tax-exempt. However, it also touches upon potential 'clubbing' provisions if the gifted money generates income, which might be taxed in the hands of the original donor.

ARUN GUPTA

ARUN GUPTA (Querist)
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16 April 2021 My son gave Gift of Rs 500000 to his mother in April 2021.Now my son wants to give gift of Rs500000/ to me. Can he give this gift amount received from my wife to me. What will be Taxable Liability to me and my son?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 April 2021 No tax liability to you and your son. Gift to relative exempt from tax.
Clubbing provisions applicable on income earned from the gift given to spouse directly or indirectly.

ARUN GUPTA

ARUN GUPTA (Querist)
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16 April 2021 Will the gift received from son is indirectly considered as gift from spouse. Pl clarify .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 April 2021 Yes, it's indirect gift.

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