Gift tax applicability
This query is : Open
05 January 2009
My father-in-law desires to gift a large sum to my minor daughter. The amount has already been taxed in his hands as income.
I would like to know whether this amount is likely to be taxable in my hand.
Alternately, can he gift this amount to my HUF / my wife.
I would like to know whether this amount is likely to be taxable in my hand.
Alternately, can he gift this amount to my HUF / my wife.
05 January 2009
Yes, gift to minor is taxable as Income from O/S in the hands of parent.
It can be gifted to ur wife or HUF
It can be gifted to ur wife or HUF
05 January 2009
Please visit https://www.rediff.com/cms/print.jsp?docpath=//money/2007/sep/27tax.htm
to study Sri R N Lakhotia's Article.
As I understand there is no tax on amount gifted by one to grand daughter irrespective of whether grand daughter is minor or adult
That income earned by minor by investing money (received as gift) suffers tax in the hands of her father is a different matter
We have to distinguish between
(1) Tax on amount received as gift
(2) Tax on income earned by investing amount received as gift
to study Sri R N Lakhotia's Article.
As I understand there is no tax on amount gifted by one to grand daughter irrespective of whether grand daughter is minor or adult
That income earned by minor by investing money (received as gift) suffers tax in the hands of her father is a different matter
We have to distinguish between
(1) Tax on amount received as gift
(2) Tax on income earned by investing amount received as gift
07 January 2009
I second Mr. K V Subba Rao's Statement
07 January 2009
thanks for the reply. with ref. hon. shri ahuja's comment, does grand father
( maternal ) not fall under the definition of relative under IT act?
( maternal ) not fall under the definition of relative under IT act?
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- Management System (IMS)
- DIN reactivation
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- GST rate and HSN code for sale of racing horses
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
