Gift received from relatives-Implications for Tax Purpose
This query is : Resolved
10 February 2011
Dear Sir,
Please tell me the answer of below naratted 2 questions :
Que-1) Mr.X,an individual gift Rs. 200,000/-(cash) to her wife Mrs. X(who is Housewife) in the Financial year 2010-11. Then gift recd by Mrs X will be clubbed in the hands of Mr.X ?(for the Tax purpose)
Que-2) Mr.X,an individual, gifts Rs. 250,000/-(cash) to his Major Son Mr.B in the Financial year 2010-11, then income or gift recd by Mr. B will be Clubbed in the hands of Mr.X or will be the income in hands of Mr.B?
--> If Mr.B is Student.(Does not have any other income or income below Rs. 160,000/-)
--> If Mr.B is salaried person.( have income of Rs. 180,000/-p.a.)
Thank you in Advance.
Please tell me the answer of below naratted 2 questions :
Que-1) Mr.X,an individual gift Rs. 200,000/-(cash) to her wife Mrs. X(who is Housewife) in the Financial year 2010-11. Then gift recd by Mrs X will be clubbed in the hands of Mr.X ?(for the Tax purpose)
Que-2) Mr.X,an individual, gifts Rs. 250,000/-(cash) to his Major Son Mr.B in the Financial year 2010-11, then income or gift recd by Mr. B will be Clubbed in the hands of Mr.X or will be the income in hands of Mr.B?
--> If Mr.B is Student.(Does not have any other income or income below Rs. 160,000/-)
--> If Mr.B is salaried person.( have income of Rs. 180,000/-p.a.)
Thank you in Advance.
11 February 2011
Ans to Q no. 1. The gift received by Mrs. X will not be clubbed in the hand of Mr. X as Mr. X himself has given the gift and gift given to wife is permitted under Income tax act. Further, any Income from that gifted money shall be clubbed in the Hands of Mr. X. However income from income shall not be clubbed eg if Mrs x invest the money in FDR the interest earned on Rs 2,00,000/- shall be clubbed in the hands of Mr. X and any further income on interest receive on interest shall be taxed in the hands of Mrs. X.
Ans to q 2. If his son is major then gift received by son will not be taxable in any hand. Income from gift will be taxable in the hands of major son only in all the case
Ans to q 2. If his son is major then gift received by son will not be taxable in any hand. Income from gift will be taxable in the hands of major son only in all the case
Message likes :
1 times
13 February 2011
Dear sir,
Thank you for Reply, but I am Confused about above answer-2 that you have given ;
-> You have told in Answer to Que-1 that "any Income from that gifted money shall be clubbed in the Hands of Mr. X. "(in reference to Mrs.X)
-> And in Answer to Que-2, You have told that "Income from gift will be taxable in the hands of major son only ,in all the case ".
Why this discrimination between wife & Major Son? I mean,It may be written in I.Tax Law but I want to confirm it.
And Sir,I want to ask further in realtion to Que-1 is that; If Mrs. X is applying in IPO & if she sells alloted shares (say for an example 25 shares) & earn Short Term Capital Gain(STCG).
Then Is this STCG will be clubbed in the hands of Mr. X or will be treated as income of Mrs.X ?
Please Reply.
Thank you in Advance.
Thank you for Reply, but I am Confused about above answer-2 that you have given ;
-> You have told in Answer to Que-1 that "any Income from that gifted money shall be clubbed in the Hands of Mr. X. "(in reference to Mrs.X)
-> And in Answer to Que-2, You have told that "Income from gift will be taxable in the hands of major son only ,in all the case ".
Why this discrimination between wife & Major Son? I mean,It may be written in I.Tax Law but I want to confirm it.
And Sir,I want to ask further in realtion to Que-1 is that; If Mrs. X is applying in IPO & if she sells alloted shares (say for an example 25 shares) & earn Short Term Capital Gain(STCG).
Then Is this STCG will be clubbed in the hands of Mr. X or will be treated as income of Mrs.X ?
Please Reply.
Thank you in Advance.
14 February 2011
In computing the total income of any individual, there shall be included all such income as arises directly or indirectly to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideation or in connection with an agreement to live apart.
Act is silent about major son.
The Income from STCG will be taxable in the hands of Mr. X only if mrs. X applied the gifted money.
Act is silent about major son.
The Income from STCG will be taxable in the hands of Mr. X only if mrs. X applied the gifted money.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Booth for sales promotion
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
