Gift thro cheque

This query is : Resolved

aishwaryajagadish (Querist)
Follow

29 February 2012 Dear Sir,

I am an income tax assessee. My brother's son in law wants to gift Rs.1,00,000/- through cheque to me today. Shall I take this as gift in my Income tax returns for A.Y.2012-2013. Please advice.

Thanks & Regards,

Chandrika

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

29 February 2012 Yes, You shall take it in your Income tax returns for A.Y.2012-13 under the head Income from Other sources.
OM SAI SRI SAI JAI JAI SAI

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

29 February 2012 Such gift is taxable in your hands under Section 56(2)(vii) since it has been received from a non-relative.

Accordingly, you will have to include the gift in your return and pay tax on it.

The amount of gift shall be included in your total income and the normal tax rates will apply to the total income.