Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Filing ITR

07 June 2018

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.

Reply
Follow
Share

10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195787 Points)
Replied 07 June 2018

" 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 !!!

Mohan Lal (30 Points)
Replied 07 June 2018

Sorry not cash, through cheque.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195787 Points)
Replied 07 June 2018

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.

Sarath Rajendran (Nil) (2791 Points)
Replied 07 June 2018

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.'.

Mohan Lal (30 Points)
Replied 07 June 2018

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.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195787 Points)
Replied 07 June 2018

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 !!!

Mohan Lal (30 Points)
Replied 07 June 2018

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?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195787 Points)
Replied 07 June 2018

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.