Hii...
One person has received an amount of Rs.100000 from one of his friend, his friend deposited the amount in the bank and he withdrew the amount from bank.... IS such Gift liable to tax ????
Thanks in advance....
kapil kumar agrawal (Chartered Accountant ) (169 Points)
06 October 2009Hii...
One person has received an amount of Rs.100000 from one of his friend, his friend deposited the amount in the bank and he withdrew the amount from bank.... IS such Gift liable to tax ????
Thanks in advance....
Max Payne
(employed)
(2574 Points)
Replied 06 October 2009
Offer it to tax.
Gift from friends does not qualify for exemption under the act, and the amount exceeds the limit for non-taxability of gifts. Unexplained credits are also treated as income of the assessee.
If you want to avoid tax, show this money as a loan from the friend, deposit the same in the friend's account as a proof of repayment (or get a stamped receipt). Withdraw it to take the sum out of the banking system and receive it in cash.
Rajeev
(www.rkmco.com)
(985 Points)
Replied 07 October 2009
Any credit in yr bank will be either income , loan or a capital receipt (gift etc) .
if its a gift , execute a gift deed to that effect , but it will be chargeable to Income tax , since gifts from frnds are taxable .
Show the transcation as it is . dont show it as loan , cos repayment is in cash ( 269T will be attracted )
Sunil
(Trader)
(2611 Points)
Replied 07 October 2009
Rs.100,000 aggregate gift received from non relatives is exempt only on the ocassion of wedding You will literally have to establish and correlate the gift as being given for wedding. Maybe on same date as wedding itself like how people enter name and addresses of donors giving chandlas during weddings. However if there is no wedding but your source is established like say a gift deed, just include it in your income and pay tax at normal rates applicable to you.
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 07 October 2009
if gift is received from friend in excess of 50,000/- the whole of such sum will be taxable pls refer section
Pls refere to the following clause from the Income tax act
Section 56(vi)
Mayank
(CA- FINAL)
(102 Points)
Replied 07 October 2009
yes it will be liable to tax
because freind is not included in the definition of relative
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