Taxation of cross gifts
This query is : Resolved
28 March 2023
Can cross gifts are taxable under Income Tax Act ? For Example: Mr.A received an gift in the form of cash/Kind amounts to Rs. 10 lakhs from Mr.B and Mr.B returned the an amount of Rs.8 lakhs to Mr.A. Both A & B are relatives. In this scenario, can cross gifts are Taxable ?
Thanks in advance.
Thanks in advance.
Dhirajlal Rambhia
(Expert)
28 March 2023
If both are relatives to each other (in either way) as specified in sec. 56(2)(x) of IT act, no tax liabilities to either.
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