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cash received from father

jai thanvi (self employed) (103 Points)

04 June 2010

cash received from father, whether it is taxable in hands of transferee.

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19 Replies

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 04 June 2010

Father is relative in terms of INCOME TAX ACT 1961 and any amount recived from relative is not taxable . hence amount recived from father is not taxable in hands of transfree.

Regards

Madhusudan Kabra

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Amir (Learner) (4016 Points)
Replied 04 June 2010

Dear Jai,

More detail is required i:e in which capacity this amount has been receivd?

If received as

>>>> Loan if exceeds Rs. 20K then Sec 269SS will get triggered and penalty of 100% of Loan will be levid otherwise no problem.

>>>> Against Consideration i:e Salary, rent interest, etc >>>> TAXABLE

>>>> Without Consideration i:e As gifts >>>> NOT TAXABLE

3 Like

CA Manoj Tilokani (JOB) (163 Points)
Replied 04 June 2010

YES, THE AMOUNT IS NOT TAXABLE

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 04 June 2010

Dear Jai,

The amt is not taxable only if it received as gift.

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 04 June 2010

Received as a gift not taxable

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CA Deepak Joshi (TaxTalk) (178 Points)
Replied 04 June 2010

wondefully explained by Mr. Amir

priyanka bathwal (student) (160 Points)
Replied 04 June 2010

Hello Mr. Amir yeh loan wala kya chakkar hai

Meine to itna hi padha hai agar gift hai to taxfree hai aur agar income form mein hai to taxable hai

vaibhav srivastava (trainee) (21 Points)
Replied 04 June 2010

dear amit actually you not clearly mention whether amount recieved is gift or loan.

assuming amount is gift so whatever amount recieved from father is exempt from tax

becoz father is come under the definition of RELATIVES

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 04 June 2010

Received as a gift is not taxable

Amir (Learner) (4016 Points)
Replied 04 June 2010

HI Priyanka,

Sec 269SS prohibits acceptance of Loan(exceeding 20k) in a manner other than Account payee cheque/draft.

Sec 271D precribes the penalty in case of contravention of Sec 269SS equivalent to the amount of Loan.

Since the question speaks about the receipt in Cash, so there is a possibilty of this section gets activated.

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CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 04 June 2010

it should be taken in nature of gift and not loan

Kumar (Article) (922 Points)
Replied 05 June 2010

Originally posted by : priyanka bathwal
	Hello Mr. Amir yeh loan wala kya chakkar hai Meine to itna hi padha hai agar gift hai to taxfree hai aur agar income form mein hai to taxable hai

Ms. Priyanks...

U can take loan from ur father also like any other person.

Take it this way U are in need of money and u want a loan.... Ur father has excess money so he can grant U a loan. (instead of gift..... as this will earn him interest and U will get deduction for interest.)

Many a time people instead of taking gift take loan from close relatives for tax planning....!!!

Hope U got yeh Kya Chakkar Hai...

karan (Article) (21 Points)
Replied 05 June 2010

the provisions of section 269ss shall not apply to any loan or deposit where the person from whom the loan or deposit is taken or accepted and the person by whom the loan or deposit is taken or accepted are both having agricultural income and neither of them has any income chargeable to tax under this Act.