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Gift related Info.

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Sandeep Jain

Pivate

706 Points Posted on 20 February 2022

Dear Sir.

Can brother give gift amount by digital mode Rs.31000/- to his elder sister.

if yes sister need to show gift amount to in ITR any lncome tax liberty needs to pay.

brother face any issues?

Replies (3)

Quick Summary

Yes, a brother can digitally gift Rs 31,000 to his elder sister in India without any tax implications for himself. The sister must declare the gift in her Income Tax Return (ITR) under the 'exempt income' category, meaning she won't incur any tax liability. It is also advisable to prepare a registered gift deed for future reference, as gifts are exempt from tax under Section 56(2)(x) of the Income Tax Act.

CA Ankith Jain

Chartered Accountant

577 Points Posted on 21 February 2022

Yes he can give the gift without any issues, gift is exempt from tax. Also sister needs to show in ITR under exempt category, hence no tax liability. Even brother doesn't face any issues, for brother no need to show in ITR.

prasad Nilugal

GST Practitioner & Accounts

8996 Points Posted on 21 February 2022

In addition to Jain sir reply , I would like to add that , it's better to prepare registered Gift deed , always in future also .
it's exempt Income as per section 56(2) of the Income tax act .