chetan shah (Prop) 12 March 2011
Hello freinds and tax gurus,
My wife's sister - residing in USA, Indian by birth, having an american passport and green card, wants to send a gift of some 2000$ to my wife. My queries are
1) Will there be any tax on the same ?
2) How to transfer the money from USA to my account in State Bank. - Wire ? Paypal ? western union ?
Looking forward to your help.
SAMAR JEET SINGH (CA) 12 March 2011
Under the Income tax act - Income from other sources - sec 56 any gift received in cash in excess of Rs.50,000/- is chargeable to tax however same is not taxable if received from relative, (relative definition covers "brother or sister of spouse of Individual").
In my opinion, if your wife is not filing tax return than you can disclose the same in your tax return under the head income from other source which shall be covered under the gift from relative "brother or sister of spouse of Individual",
Where your wife is filing the return you can disclose the same in her tax return under the head income from other source which shall be covered under the gift from relative "brother or sister of Individual".
Either case receipt of income shall not be taxable.
Balaji (Knowledge Seeker) 13 March 2011
1) The gift received from sister is exempt.
2) The mode of receipt is irrelevant and you can choose the option most suited to you.
3) It would be prudent to obtain a letter from the sister that this gift is made out of natural love and affection and is irrevocable.
C.A Pawan Jupudi (Finance Consultant) 14 March 2011
|Originally posted by : puneet|
If gift recived by other then relative
then WHAT IS ANSWER?
Then it will taxable u/s 56 2 (vii)
If aggregate amount of sum of money received by a individual/ HUF without any consideration from one or more persons during a previous year exceeds ` 50,000, the whole of such aggregate value will be chargeable to tax