Taxability on gift and income thereon

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This query is : Resolved

Sanju (Querist)

17 March 2015 There is need of Cash in my Proprietorship Firm of about Rs. 15 lakhs.

There are 2 questions:
1) I want to know whether I can show Gift received from either of the below persons and Invest in my Sole Propreietorship:
a) Mother
b) Wife

Note:- There is enough capital/Fund Standing in their names.

2) My CA said that "don't show gift received from Wife above Rs. 1 Lakh" to which i am confused. He also said that "Gift from WIfe has many restrictions"
Is there any statutory provision or any case law regarding this limit of 1 lakh or any other reason behind such advice of my CA?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

17 March 2015 You can safely take gift from mother since no clubbing provisions will be applicable but if you take gift from your wife than income earned from business by you out of funds borrowed from your wife will be clubbed in the hands of your wife as per section 64.

Sanju

Sanju (Querist)

17 March 2015 SO, will there be double taxation of the Income??

and if not then as per you I can enjoy the TAx Slab benefit on the AMount so clubbed in the hands of my wife.

Amol S Joglekar

Amol S Joglekar (Expert)

17 March 2015 01. No doube taxation. The income clubbed under your wife's income shall not be included in your income.
02. you can try the option of LOAN (Interest free) for your above mentioned query.

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