Itr personal transaction

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This discussion addresses queries about declaring personal transactions in your Income Tax Return (ITR). It clarifies that gifts received from close relatives, such as a son, are exempt from tax under Section 56(2) of the IT Act, regardless of the amount. The advice also touches upon managing credit card payments where you've ordered items for others and received funds, suggesting avoiding cash transactions and ensuring your declared income aligns with your expenditure to prevent queries from tax authorities.

uma sharma

uma sharma (Querist)

22 July 2023 Sir i have 2 queries :
1. If i have received upi from my son of small amounts like 5k during the year aggregate amount is around 1.5 lakh.

2. If i have paid credit card bills aggregating to which around 10lakh , however in some of the cases i have ordered things for others and received amount in my savings account or by cash . How will i deal with it in itr filing.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 July 2023 1. Consider it as gift.
2. There may be query, if aggregate payments have exceeded 10 lakhs, while your income declaration may not compatible to the expenditure. Avoid any cash transactions.

uma sharma

uma sharma (Querist)

22 July 2023 Sir if i consider it as gift is it taxable? Or i can show it as loan

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 July 2023 Son being RELATIVE as per sec. 56(2) IT act, any amount of gift from son is exempt.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 September 2024 Good luck.

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