My grandmother gifted me cash Rs 14 Lacs in September 2017. I invested this amount in Post office RD and TD account. Interest on RD and TD account is payable anually in September. So for year 2017-18, I have following income-
1. Interest on FD account which is less than Rs 10000, on which no TDS is deducted.
2. Cash gift received from my grandmother.
As my Total Income does not exceed MANCT, is there any specific disclosure required in any of the ITR for gift received from relative? Whether I have to file ITR for AY 2018-19?
Please suggest other Tax implications.
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Filing ITR
Replies (10)
" My grandmother gifted me cash Rs 14 Lacs in September 2017."
A penalty of equal amount gets attracted for violation of sec. 269ST of IT act !!!
Sorry not cash, through cheque.
1. Prepare gift deed with proofs of bank transactions......... Also check the capital account of your grandmother for justification of any query raised by ITD.
2. The gift amount to be declared under 'exempted income' in your ITR.
If you get this 14 lakhs as CASH Then Section 269 ST will be applicable
After section 269SS of the Income-tax Act, the following section shall be inserted, namely:—
'269ST. Mode of undertaking transactions.—No person shall receive an amount of two lakh rupees or more—
| (a) | in aggregate from a person in a day; or | |
| (b) | in respect of a single transaction; or | |
| (c) | in respect of transactions relating to one event or occasion from a person, |
otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:
Provided that the provisions of this section shall not apply to—
| (i) | any receipt by— |
| (a) | Government; | |
| (b) | any banking company, post office savings bank or co-operative bank; |
| (ii) | transactions of the nature referred to in section 269SS; | |
| (iii) | such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify. |
Explanation.—For the purposes of this section,—
| (a) | "banking company" shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS; | |
| (b) | "co-operative bank" shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.'. |
Even if my taxable income is less than the specified limit, then also I have to file ITR? And how to check my grandmother's capital account? All other formalities of gift deed and bank are fulfilled.
The capacity to gift such an amount, by donor should be justified, otherwise it will be added to your income as undisclosed income and will attract tax, interest over it and penalty.
Yes, ITR should be filed as an advance preparation to reply future query based on your investment !!!
The source of gift is long term capital gain on house property sold in AY 2017-18. If My grandmother files Return, then also I have to file Return? Her ITR is sufficient source of investment and any future queries?
If she has filed return & paid her tax liability; also if she has sufficient bank balance to donate; you need not file return, but be prepared with these documents for any NMS query.
What is NMS query?
Non filers Monitoring System.......... (a project of ITD to watch for high value transactions of non-tax payers, who do not file return)
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