Gift

monor can receive gift upto 50000/- income from same would be clubbed to father or mother which ever has higher income.

HI , it is subject to the the condition whether minor to whom such gift is given will be covered under the definition of relative as given in explaination to the section 56(2)(vii),or not if it is covered no taxability otherwise as replied by sharmaji and also  to be taken into consideration is what thing is being gifted whether it is covered under the above mentioned section or not .

Minor can receive gift can be given above Rs.50000 also if the same is received from relative as defined unders section 56(2)(vii). If it is reecived other than the person defined in the section then it would chargeable as income in the hand of parent who is having higher income.

sir but if it is received from relative then as per sec 56(2)(vii) then it is exempt and if it is received from a person other than relative and it is receipt exceeds 50000/- then the whole amount of gift is taxable this same is applicable for the minor also or not?

Originally posted by : khushboo
	sir but if it is received from relative then as per sec 56(2)(vii) then it is exempt and if it is received from a person other than relative and it is receipt exceeds 50000/- then the whole amount of gift is taxable this same is applicable for the minor also or not?

Yes , the same is applicable to  Minor

Originally posted by : khushboo
	sir but if it is received from relative then as per sec 56(2)(vii) then it is exempt and if it is received from a person other than relative and it is receipt exceeds 50000/- then the whole amount of gift is taxable this same is applicable for the minor also or not?

yes the same it true for minors also.and from 1.10.2009 gift of property is also covered .

As Per Section 56(2)(vii), if any gift received in any form( in case of movable property then its fair value to be considered, for immovable property its stamp duty value and for cash its value in cash shall be taken) will be taxed in the hands of recepient, if it exceed Rs.50,000/- . But in case of minor, gift has been received by him/her shall be chargeable in the hands of the parent whose income higher before clubbing of minor's income as contemplated by sec.64(1A), except exempted circumstances given u/s. 56(2)(vii).

Even if gift received from relative, gift is not taxable but the income from such gift amount gets taxed in hands of father or mother of minor child whomsoever whose income is greater.

On the above query, a further question :

If minor receives gift say Rs. 50000/-. If the father also receives gift Rs. 50000/- and mother also receives gift Rs. 50000/-. If these gifts are from persons other than relatives, what is the Tax implication? Would the gift of minor be clubbed with the income of either parent?

If amount received exceeds 50000, then the whole amount is taxable, so in all three cases the gift remains to be within prescribed limit and the clubbing provisions in case of minor does not get attracted.

If in all three persons the amount is changed to 50001 then minors gift will get clubbed with father or mother whose income is higher including gift 50001 each.

Suppose both parents income remains same after addition then check previous years where clubbing had been done, if this is first year of clubbing then father or mother can decide on any bodies case.

if u have any further issues, feel free to ask.

So, in the above case, all three individuals -- Father, Mother & Child will have exempt Incomes of Rs. 50000/- each. And, for all the 3 persons' Capital Accounts will be increased by this amount of Rs. 50000/- each... Right? Correct me if I am wrong.

Originally posted by : Hardik
	So, in the above case, all three individuals -- Father, Mother & Child will have exempt Incomes of50000/- each. And, for all the 3 persons' Capital Accounts will be increased by this amount of50000/- each... Right? Correct me if I am wrong.

not true, 

behind every amount tendered there must be some reason of the doner for such gifts, as its tender of money without consideration .........

random use of this provision will initiate investigation of physical verification of doners with their tax status and their capacity asseessment viz eligibility for offering such amounts for offering as gift,.

misuse of such provisions would be taken in hands of evasion.