Tax on amount received from parents
This query is : Resolved
22 September 2014
Dear Respected Experts
During purchase of flat, my parents gave me Rs. 5L. In this regard I request for your advise on the following points:
(1) Is the said amount is taxable?
(2) Should I need to declare this amount in my IT return? or
(3) The amount is need to be declared by parents in their IT return?
Your help is requested.
Thanking you in advance.
Kind Regards
Rahul Saraswat
During purchase of flat, my parents gave me Rs. 5L. In this regard I request for your advise on the following points:
(1) Is the said amount is taxable?
(2) Should I need to declare this amount in my IT return? or
(3) The amount is need to be declared by parents in their IT return?
Your help is requested.
Thanking you in advance.
Kind Regards
Rahul Saraswat
22 September 2014
1) This amount is not taxable as it is received from parents.
2) You need to declare this in your IT return.
3) Parents need not declare.
2) You need to declare this in your IT return.
3) Parents need not declare.
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22 September 2014
1. not taxable as parents are relatives as per sec 56(2).
2.yes
3.no
2.yes
3.no
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22 September 2014
Dear Experts
Thanks a lot for the advice, I had already filed my returns for the AY. So, one thing is clear that I need to file the revised IT return for the concerned AY in my case it is AY 2011-12. Please guide me for the following:
(1) Is it possible to file revised return for AY 2011-12 now?
(2) Where should I mention the amount received? I didn't find any space in ITR-1.
(3) Or is there any specific format, which needs to be attached with the IT return? If yes,a copy of format will be very helpful from your end.
Thanking you in advance.
Kind Regards
Rahul Saraswat
Thanks a lot for the advice, I had already filed my returns for the AY. So, one thing is clear that I need to file the revised IT return for the concerned AY in my case it is AY 2011-12. Please guide me for the following:
(1) Is it possible to file revised return for AY 2011-12 now?
(2) Where should I mention the amount received? I didn't find any space in ITR-1.
(3) Or is there any specific format, which needs to be attached with the IT return? If yes,a copy of format will be very helpful from your end.
Thanking you in advance.
Kind Regards
Rahul Saraswat
22 September 2014
It is not possible to revise your return for AY 2011-12 now. Any how no problem being non taxable gift. Keep evidence of receipt of gift so that whenever any inquiry on source of purchase you can produce it.
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22 September 2014
Thanks sir, is there a specific format of receipt or just a simple document with details of amount and reasons for gift?
22 September 2014
Simple document with details of amount and reasons for gift is enough. Have your bank statement showing credit in your account and PAN No of your parent if available.
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22 September 2014
Yes sir, the amount was transferred electronically in my account and my parent have PAN card. Though, I am not sure it is mentioned in the Bank Account Statement or not.
22 September 2014
you need to make a gift deed in this case...
22 September 2014
Gift by way of cheque or cash(account transfer) is not required to be executed through a gift deed. It can be written on a plain paper also.
24 September 2014
pls provide any supportings for the same as the amount is 5,00,000
24 September 2014
Please go through the views of Lawyers club.
no gift deed is necessary for cash/cheque gifts .
http://www.lawyersclubindia.com/experts/Gift-deed-for-cash-cheque-gift-278891.asp#.VCJSIZSSyik
no gift deed is necessary for cash/cheque gifts .
http://www.lawyersclubindia.com/experts/Gift-deed-for-cash-cheque-gift-278891.asp#.VCJSIZSSyik
24 September 2014
in the above link mentioned pls check the reply by expert vishal which says for avaoiding any tax complications later its is advisable to prepare gift deed.
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