IS CROWD FUND RECEIVED BY AN INDIVIDUAL TAXABLE U/S 56(2) ?

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This query is : Resolved

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This discussion explores whether money received by an individual through crowdfunding is considered taxable income under Section 56(2). It highlights potential exemptions, such as gifts from family members up to a certain amount, marriage gifts, and inheritances. The consensus suggests that funds raised for specific purposes like medical expenses could be treated as taxable income, but donations directly to hospitals might offer a way to avoid personal tax liability.

Peter Pamatthai

Peter Pamatthai (Querist)

30 November 2021 DEAR SIR I BELIEVE THAT WHEN AN INDIVIDUAL RECEIVES GIFTS OR DONATIONS FROM PERSONS NOT RELATED TO HIM , THAT SUM SO RECEIVED IS TAXABLE U/S 56 (2) . NOW I WOULD LIKE TO CONFIRM THAT THERE IS NO BETTER OPTION TO AVOID TAX . PLS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 November 2021 1. UPTO RS. FIFTY THOUSAND BY EACH FAMILY MEMBER/PERSON EVERY YEAR IS EXEMPT.
2. ON OCCASION OF MARRIAGE, TOTALLY TAX EXEMPT.
3. SOME PERSONAL GIFTS, NOT OF CASH NATURE ARE NOT ACCOUNTED AS ASSET ....
4. ANY SUM RECEIVED UNDER 'WILL' OR 'INHERITANCE' IS TAX EXEMPT.

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Peter Pamatthai

Peter Pamatthai (Querist)

30 November 2021 THIS MEANS THAT IF A PERSON IN DISTRESS COLLECTS MONEY FROM THE PUBLIC SAY 25 LAKHS FOR HIS MEDICAL AND REHABITATION EXPENSES , THE WHOLE AMOUNT WILL BE TREATED AS HIS INCOME IN THAT PREVIOUS YEAR OF RECEIPT - RIGHT ?

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 November 2021 YES SIR, THAT CAN BE SAVED BY DONATION TO HOSPITAL/S..

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