Gift tax section
This query is : Resolved
16 November 2013
HELLO FRNDS
I HAVE RECVD MONEY FROM MY FATHER AS GIFT 350000 IN CASH.AND NOW I AM PURCHASE NEW CAR.
MY QUERY IS
1.IT'S EXEMPT OR NOT
2.IF EXEMPT SO WHICH SECTION SHOW IN MY ITR FORM
THANKING YOU
I HAVE RECVD MONEY FROM MY FATHER AS GIFT 350000 IN CASH.AND NOW I AM PURCHASE NEW CAR.
MY QUERY IS
1.IT'S EXEMPT OR NOT
2.IF EXEMPT SO WHICH SECTION SHOW IN MY ITR FORM
THANKING YOU
17 November 2013
Any gift received from relatives is exempt u/s 56(2)(vii) if the IT Act.
'Relatives' includes inter alia brother, sister and any lineal ascendant or descendant of the individual.
Hence,
1. Gift received in cash from father is exempt. However, it is better that you take an undertaking from your father in a GIFT DEED. (Browse Google for the Format - No standard format)
2. In ITR, you have to show under 'Others' row in EI tab.
'Relatives' includes inter alia brother, sister and any lineal ascendant or descendant of the individual.
Hence,
1. Gift received in cash from father is exempt. However, it is better that you take an undertaking from your father in a GIFT DEED. (Browse Google for the Format - No standard format)
2. In ITR, you have to show under 'Others' row in EI tab.
Message likes :
1 times
17 November 2013
It is not income at all. It is not required to be shown in your Return anywhere. Your capital account will be credited by the amount gifted to you.
Message likes :
1 times
19 November 2013
Mr. Bafna,
Please refer to Section 2(24)(xv) of the Income Act, where income includes;
any sum of money or value of property referred to in clause (vii) [or clause (viia)] of sub-section (2) of section 56;
Hence, even a capital receipt, as above is first considered as income. Next point to be verified is whether the same is taxable or not.
In this case, it is not taxable.
Please refer to Section 2(24)(xv) of the Income Act, where income includes;
any sum of money or value of property referred to in clause (vii) [or clause (viia)] of sub-section (2) of section 56;
Hence, even a capital receipt, as above is first considered as income. Next point to be verified is whether the same is taxable or not.
In this case, it is not taxable.
19 November 2013
The sum referred in Section 2(24)(xv), which is treated as an income , is the sum received from a non relative and not all the sums.
.
My conclusion is based on the second proviso
to the clause (vii) of Section 56(2) which reads as under-
" Provided further that this clause shall not apply to any sum of money or property received-
(a) from any relative; or........"
.
So the clause itself contains the provision
for the exclusion of "any sum of money" received from a relative, so the same can not at any level be treated as income as referred to in Section 2(24)(xv).
.
.
My conclusion is based on the second proviso
to the clause (vii) of Section 56(2) which reads as under-
" Provided further that this clause shall not apply to any sum of money or property received-
(a) from any relative; or........"
.
So the clause itself contains the provision
for the exclusion of "any sum of money" received from a relative, so the same can not at any level be treated as income as referred to in Section 2(24)(xv).
.
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
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- Foreign lottery ticket bought online from India: legality, tax and consequences
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- 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
