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Cash gifts on birth of new born baby

Umesh Maurya (CA_House) (40 Points)

09 January 2013

Hi frndzz

I hve a query regrding the clubbing provisions u/s 60and treatment of Gifts taxable u/s 56. Upto what limit is the Cash gifts not taxable hence not clubbed in the income of parent.

Is the deduction u/s 10(32) of Rs. 1500 available in case of gifts also

Kindly revert back soon

thanks in advance

Umesh Maurya

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8 Replies

Ashish (CA) (166 Points)
Replied 09 January 2013

Cash gift above Rs 50,000/- per person per AY is taxable and is clubbed in Income of Parents Who income (Before clubbing) is more.

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Umesh Maurya (CA_House) (40 Points)
Replied 09 January 2013

thnks

But i want to know whether Deduction of Rs. 1500 availabe???

and wat abt gifts in kind??

Ashish (CA) (166 Points)
Replied 09 January 2013

See section 2(56) (VII): Gift in kind above Rs 50000 in value is taxable. Below it is not taxable. If Income is NOT included in Income then their is NO question of claiming deduction.

CA Hardik Bunha (self) (2121 Points)
Replied 09 January 2013

deduction of Rs. 1,500/- is available.

kavitha (studying final) (830 Points)
Replied 09 January 2013

Originally posted by : Ashish
	See section 2(56) (VII): Gift in kind above Rs 50000 in value is taxable. Below it is not taxable. If Income is NOT included in Income then their is NO question of claiming deduction.