Gift from Mother's brother

Tax queries 789 views 14 replies

My uncle wants to gift by bank transfer, kindly let me know if its taxable?

Are there any caps on the amount being transferred?

 

Thanks

Replies (14)
Not a direct blood relation

Thanks for your response, does it mean he can't gift ?

He can Gift , But you need to pay Tax on the whole amount .

 

Alternative way is . Your mama gifts it  to your mother and your mother gifts it to you ( after a few months or a year at least)

Gift received from mother's brother is tax-exempt. Mama comes under relatives, under IT act.

Sir mera bhi post ka reply kar do please 

It will be tax exempt to Bhanja. There is no cap/limit; but it should be through banking mode. Additionally, you can prepare Gift deed on safer side.

Thanks for your response Sir, will go for Gift deed to be on the safer side

Good Luck.  

suppose a friend in usa wants to gift me more than rs 50000 ,then how will i show in my income...i hope it wont create any problem..what is the best method

Declare it under Schedule IFOS, and pay tax over it.

thanks a lot sir i have to just declare its a gift for a noble cause and i am ready to pay tax on it 

As per IT rules, any gift of Rs. 50,000/- or more to any individual, from Non-Relative/s, on other than specific occasion/s, are taxed at normal slab rate.

Good luck.

One workaround could be having your uncle gift it to your mother first, and then she can gift it to you later, as gifts between immediate family members are often exempt.

Gifts not chargeable to tax [Sec. 56(2)(x)]

** ‘Relative’ shall mean:

1. Spouse of the individual

2. Brother or sister of the individual

3. Brother or sister of the spouse of the individual

4. Brother or sister of either of the parents of the individual

5. Any lineal ascendant or descendant of the individual

6. Any lineal ascendant or descendant of spouse of the individual

7. Spouse of the person referred in point 2-6 above

*** ‘Family’, in relation to an individual, means:

1. The spouse and children of the individual; and

2. The parents, brothers, and sisters of the individual or any of them, wholly or mainly dependent on the individual.


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