hello everyone,
my query is that if any A give gift of Rs. 5 lakh to his son whose age is 20 year. his son deposit this amount in bank and earn rs. 50,000 as interest.
now the income earned on this gifted amount will be taxable for person A or for his son? will it attract clubbing provision?
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Clubbing of income
Replies (3)
No,It will not be clubbed as age of the son is 20 years
thanks for quick reply... please confirm me that the gift amount of rs. 5 lakh will be taxable income inthe hands of son. or gift us exempt
rs. 5 lakh will be taxable income or not it depends on from where we receive it.
There are 2 cases:
#Case 1: not taxable income:
if received from:
1. parents
2. ascending
3. descending
4. spouses of above
5. relatives
6. through will
7. as reward from Charitable trust
#Case 2: taxable income:
if gifts received in any other way except #above case 1 shall be taxable
There are 2 cases:
#Case 1: not taxable income:
if received from:
1. parents
2. ascending
3. descending
4. spouses of above
5. relatives
6. through will
7. as reward from Charitable trust
#Case 2: taxable income:
if gifts received in any other way except #above case 1 shall be taxable
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