Tax on gifts to a New Born

This query is : Resolved

Rahul (Querist)
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20 October 2008 Hello,

I will be becoming a father of a baby late this month. I wanted to know the Tax Implications on the cash gifts given to the new born.

I also heard of PAN Cards of the babies, the 45 days/60 days babies created record by obtaining one. Please also update me in this regard. "May be i can create a record of 10 or 15 days" - Just Joking.

Regards,
Rahul.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 October 2008 See section 56 of IT Act.

Rahul

Rahul (Querist)
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20 October 2008 Hello,

Please guide me through... Where do i find this section?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 October 2008 Income tax Act 1961.

Rahul

Rahul (Querist)
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20 October 2008 Hello,

I am a new commer. Please ig you can guide me with some links or may be direct explaination of the act.

Its like me explaing a finace manager in 'C'

Please guide.

Regards,
Rahul

Rahul

Rahul (Querist)
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20 October 2008 Ok! I Found Income Tax Act 1961 and read section 56.

Nothing is mentioned about tax received by a new born (Well my friends can also gift!!).

Also, nothing about PAN for a new born...

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 October 2008 The new born child is an individual!
PAN can be obtained for any individual, HUF, firm or company or any person for that matter.

Rahul

Rahul (Querist)
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20 October 2008 Hello,

How about the gift to the new born... No update on that.

I wanted to know whatever is received by the child on his birth is tax free or will i have to pay tax for it. Who will be liable for same (I mean me or my wife when both are tax payees)

Regards