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Rahul Bansal (Querist)

10 September 2011 if any son gives money to his parents...then will it be consider as gift or loan + what will its tax implications?

....if that money is invested by his parents in shares....then what will be the effect?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

21 September 2011 You have to see the actual intention of the transaction.

The sum of money was given with an intention to recieve it back or was it given as a gift.

Anyways,there is no tax implication in both the cases.

Gift is exempt if received from a relative

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Rahul Bansal

Rahul Bansal (Querist)

21 October 2011 thanks sid....will u lpz refer sections for the same

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

22 October 2011 Section 56(2)(vii) of the Income Tax Act provides that gifts received are taxable in the hands of the recipient.

However, Second proviso provides that gifts received from relatives is not taxable.

Relative means—

i)spouse of the individual;

ii)brother or sister of the individual;

iii)brother or sister of the spouse of the individual;

iv)brother or sister of either of the parents of the individual;

v)any lineal ascendant or descendant of the individual;

vi)any lineal ascendant or descendant of the spouse of the individual;

vii)spouse of the person referred to in clauses (ii) to (vi);]

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Rahul Bansal

Rahul Bansal (Querist)

24 October 2011 THANKS A LOT FOR QUOTING THE SECTION

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