Taxability of gifts

Say ur father gave u 100,000 and u have deposited that in a bank and receive interest..

It becomes interest income and is taxable under IFOS.

If u r investing in a business and receiving gains out of it, it is taxable u / PGBP.

So any income out of gift is taxable u/ the respective head.

Look if you receive a gift from your relative (relative as defined under this section) then it is fully exempt but if you invest or use that gift somewhere and you get income out of it then it would be taxable under an appropriate head. And the monetary gift which you receive from your relative, irrespective of the, it is fully exempt.

Fully exempt. Income from this 100000 will be taxable in father's hands under respective head. (assuming the son has attained majority)

Income from investing gift amount received is generally taxable in the hands of receiver. But section 64 clubbing of income attracted in few cases.

Originally posted by : RahulMehta
	Fully exempt. Income from this 100000 will be taxable in father's hands under respective head. (assuming the son has attained majority) Correction-->  Income from this 100000 will be taxable in father's hands under respective head. (assuming the son has NOT attained majority)

 

If Father gift land to his son & son contribute the same land on the Partnership Firm where he & his father are the partner?