SEC 56 (v)

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This query is : Resolved

asha fernandes (Querist)

24 July 2008 ANY SUM OF MONEY RECEIVED IN CASH IS TAXABLE. BUT IF I HAVE NOT RECEIVED IN CASH BUT THE DONOR HAS PAID MY SHOPPING BILLS ,THEN IS IT TAXABLE. THE BILLS ARE IN MY NAME WHICH I HAVE PURCHASED FOR MY HOUSE BUT SOMEONE ELSE MAKES THE PAYMENTS . THEN WHAT HAPPENS. KINDLY LET ME KNOW. THANKS

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

24 July 2008 As long as you do not receive cash but able to substantiate you did not then there is no problem.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

24 July 2008 In case bills are in your name, it suugests that you have purchased the items billed on you. As such, the cash payment made by the donor may be held as a cash gift to u. It can not be argued that the gift is otherwise than as cash. Even, the cash receipt will be issued in your name as a discharge of liability due against the said bill. Under the circumstances, the flow of transactions will itself suggest that u have received cash and paid the bills.

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