Taxability of gift received
This query is : Resolved
17 December 2015
hi sir,
please clarify my doubt.
i received gift from my wife cousion brother, who is in UK.
will it be the taxable to tax?
what should be the wayout for me legally to receive funds& pay tax.
Please give me the advice.
Thanking you.
please clarify my doubt.
i received gift from my wife cousion brother, who is in UK.
will it be the taxable to tax?
what should be the wayout for me legally to receive funds& pay tax.
Please give me the advice.
Thanking you.
17 December 2015
Dear Mr. Reddy
Gift received from relatives are not taxable.
Relative means:-
Definition of relative for the purpose of section 56(2)(vii) is reproduced as under:
(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).
Gift received from relatives are not taxable.
Relative means:-
Definition of relative for the purpose of section 56(2)(vii) is reproduced as under:
(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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17 December 2015
https://www.caclubindia.com/articles/relatives-under-the-income-tax-act-a-relative-concept-963.asp?utm_source=articles&utm_medium=sharestrip&utm_campaign=socialshare
sir please see the 7th point, in that cousion is excluded from definition of relative.
sir please see the 7th point, in that cousion is excluded from definition of relative.
17 December 2015
Mr reddy
tell me exact status of ur cousin brother.
Who is he parental uncle son or maternal uncle son
tell me exact status of ur cousin brother.
Who is he parental uncle son or maternal uncle son
17 December 2015
And also any cousins are not covered in defination of the Relative.
17 December 2015
Gift received from cousins will be taxable in ur hands under the head income from other sources.
17 December 2015
relationship is ...
Brothers wife -father -sister -son.
and how can i legally receive funds¬ pay the tax
Brothers wife -father -sister -son.
and how can i legally receive funds¬ pay the tax
17 December 2015
your cousin is not a relative under income tax.
As ur cousin is nri
Receive money in your bank account
and then show it in the itr of that year as income under the head other sources(gift income)
As ur cousin is nri
Receive money in your bank account
and then show it in the itr of that year as income under the head other sources(gift income)
17 December 2015
can we break the gift received chain i.e son will give the gift to mother(sister), sister will giv the gift to brother...like that,,?
is it legally acceptable.
is it legally acceptable.
18 December 2015
DEAr
breaking of chain has no problem.
But if your case comes in scrutiny then that will become a case of tax evasion because you are creating a chain to avoid tax.
The ultimate source of gift would be the same i.e NRI.
In my opinion no need to create unnecessary hustle.
breaking of chain has no problem.
But if your case comes in scrutiny then that will become a case of tax evasion because you are creating a chain to avoid tax.
The ultimate source of gift would be the same i.e NRI.
In my opinion no need to create unnecessary hustle.
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