Gift

Dear Sir

As pe Donor's point of view : -

1. If doner is a business entity and will claim this gift as expenses than cash payment more than INR 20000 will be disallowed u/s 40A(3)(a).

2. If donor is not a business entity than can gift in cash more than INR 20000 without any restrictions.

As per Donee's Point of view :-

1. Any gift received in cash in more than INR 20000 but restricted upto INR 50000, no tax liability will arise.

2. Any gift received in cash is more than INR 50000 will be taxable under income tax act 1961.

Note :- Any gift received from Relatives the above conditions will not apply