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chetan shah (Prop)     12 March 2011

Gift From US

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.

 



 12 Replies

Devendra

Devendra (Chartered Accountant)     12 March 2011

The Gift received is exempt from Tax. The money can be transferred via Western Union Money Transfer. regards, Devendra Kulkarni
ramesh kumar

ramesh kumar (self)     12 March 2011

thanks a lot - useful

CA Mandar Joshi

CA Mandar Joshi (PRACTICE)     12 March 2011

yes, it will be exempt as it will be received from sister of your spouse. No tax, but recommended that you disclose it.

SAMAR JEET SINGH

SAMAR JEET SINGH (CA)     12 March 2011

Hi,

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.

Warm regards

SANJAY

SANJAY (CHARTERED ACCOUNTANTS)     12 March 2011

Yes i agree with Mr. Samar Jeet Singh...

chetan shah

chetan shah (Prop)     12 March 2011

I just checked with Western Union. really low exchange rate. Can i receive it in Cash in US $ ? or Thru Paypal ?


(Guest)

it will be exempt

Balaji

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.

puneet

puneet (Student)     13 March 2011

If gift recived by other then relative then WHAT IS ANSWER?
chetan shah

chetan shah (Prop)     13 March 2011

cos she is coming over next week, she doesnt have time to do the banking thing or western union or paypal. SO is it advisble to get cash from her ?

U S Sharma

U S Sharma (glidor@gmail.com)     13 March 2011

then she can make a D/D for the receipent. 

in india if she gifts then she must have PAN or banking channel 

C.A Pawan Jupudi

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


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