Money Gift

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Jyoti (Querist)
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25 March 2021 My father , mother and sister want to gift me money every year for supporting me in my business , i am income tax assese (My Firm books is audited every year by my ca )
and they all are also , 1)
is which money they gift me is taxable or not ?
2)
is these banking transactions are attract to fix scrutiny cases ?
Kindly clear my these 2 points

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 March 2021 1 No tax payable on such gifts through bank.
2 Bank transaction will not attract scrutiny.

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Jyoti

Jyoti (Querist)
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25 March 2021 My advisors says to pay interest on these amount as unsecured loan but this is bothering me ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 March 2021 No interest payable on such gifts.

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Jyoti

Jyoti (Querist)
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25 March 2021 Is Husband gift Money to Wife Or wife gift money to Husband in both situation income tax is applicable or not ? and standing unsecured loan is applicable or not in Husband wife case ?

Jyoti

Jyoti (Querist)
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26 March 2021 Is Husband gift Money to Wife Or wife gift money to Husband in both situation income tax is applicable or not ? and standing unsecured loan is applicable or not in Husband wife case ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 March 2021 In both situation income tax not applicable.
Un secured loan income tax not applicable.
Income earned from such gifts taxable in the hands of husband/wife who made the gift.

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Jyoti

Jyoti (Querist)
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26 March 2021 I use this gifted money from my husband in my business so now generated income tax from my profit is taxable sir , this is the meaning of your words sir , am I right sir ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 March 2021 It's clubbing provisions. Gift is not taxable. If you put gifted amount in FD and earn interest. That interest is taxable in the hands of donor

Jyoti

Jyoti (Querist)
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26 March 2021 Gift is not taxable I understand this by the help of you, but If i am not putting gifted amount in FD and use gifted amount in my business working capital or in infrastructure then I am liable to pay income tax on my profit of business?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 March 2021 In such a case clubbing provisions not applicable as profit earned not on such investment not acertainable.

Jyoti

Jyoti (Querist)
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26 March 2021 It means earned income from gifted money business is taxable for me only and not to give any share means profit to gifted money person ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 March 2021 Yes, income from business s based on your efforts you earned money.

Jyoti

Jyoti (Querist)
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27 March 2021 Ok sir thankyou so much for clarification

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