13 July 2014
I work for a Sole proprietor and the proprietor has decided to pass on cash as gifts. Can this be routed through parents to save tax? Both my parents do not have income currently. Is this allowed for a proprietor to gift parents of an employee working for him? Will there be any tax implication on the proprietor?
14 July 2014
1. the cash given as gift wont be allowed as an expense unless the source of the cash is explained. if the source is not explained, penalties can be levied.
2. the amount received by the parent of the employee shall be included in their incomes.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
14 July 2014
Can a movable gift deed be signed between the company and my parents to explain the source of cash?