Clubing of income
Ashish Pande (Finance Executive) (51 Points)
08 August 2017Ashish Pande (Finance Executive) (51 Points)
08 August 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160692 Points)
Replied 08 August 2017
No clubbing of income in this case. (assuming you to be major)
The income generated from the gift amount will be assessable in your hand.
Kushal Pande
(CFO)
(256 Points)
Replied 08 August 2017
Dhirajlal ji,
1) What happens if he gifts it back to his father in some future FY?
2) Should this gift be shown as "Exempt Income" in ITR? Will filing ITR be mandatory in this case? Even if income < 2.5L ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160692 Points)
Replied 09 August 2017
1. The return of gift...... legally gift cannot be return back......... will be an independent gift from son to father....... and treated accordingly........... exempt u/s. 56(2)(vii)
2. Gift is exempt....... and as such capital receipt............. and not being income, not necessary to file return if other income is below 2.50 lakhs.
But according to me advisable to file return and declare such big deals, to avoid any future queries. (though contrary views also hold good in many other cases)
Ashish Pande
(Finance Executive)
(51 Points)
Replied 09 August 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160692 Points)
Replied 09 August 2017
Kushal Pande
(CFO)
(256 Points)
Replied 09 August 2017
Dhirajlal ji,
Can the clubbing provisions on the interest earned be circumvented, if money is routed like this:
Father > Son/Daughter (major) > Mother
i.e.:
Husband > Wife
?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160692 Points)
Replied 10 August 2017
As such nothing illegal, but at a time objectionable. Should be neat and spreaded over some time period. (well, I restrict myself to reply such queries..... so sorry for next time.......)