Gift Tax

If an amount is recievd  without adequate considertaion then sec 56 (2)vi is attracted.

But since it is recievd from a father who falls under  d defintition of 'Relative' then upto50,000 during d FY is not taxable. No need of any gift deed to be made since it is a movable property.

thanks Sir..................bt have u considered, that it is the remuneration that father wants to give his son as gift.

if it is a gift  (from relative) then nothing is Taxable. but if any amount is received from employer then it is taxable as salary. it doesn't matter by what name it is known.

Hi Amanpreet

the same thing m asking that son is the employee in his father's organisation and now he wants to go abroad for studies,and now father wants to give this remuneration as a gift to his son.

Actually it is a practical case i have to handle...son is the employee in his father's organisation till now, and next month wants to go to abraod, and father wants to give the remuneration as a gift, so that it could not be taxable..

How can a remuneartion be called as gift wher remuneration is recvd only by an employee by virtue of Employer-Employee Relationship under  a contract for service.

There is very simple solution to this query . First of all lets agree on the point that this thing cant be done by gift mode. Even if it's allowed father's taxabilty does not reduced . But if son Advances money to father as unsecured loan ( From earning of 30000 rs p.m which  he is getting from father organaisation ) after that organaisation will pay intt on this amount  which will be deducted from taxable income of firm.  For The remaining part  they can do this by there HUF file (if Exits.) I can provide u some more practicle solution but it will be provided on personal mail id only.

@ Suman - First of all a salary can never be given as gift.

secondly Sec 192 is attracted since Tax needs  to be deducted (if conditions under 192 fulfilled).

Suppose if Tax needs to be deducted thn if gvn as gift in whole without deducting tds thn Father will be deemed to be assessee in defualt n will be liable to pay intrst u/s 201(1).Further if tds nt  deducted(if req to)  thn Penalty u/s 271C (1) will be applicable.

Suppose ther is no Huf created by dad thn watever u said is not applicable.

Tushar Sir i m agree with u and thanks for ur feedback

bt pls try to understand my querry, i m saying if in the month of may, son resigned his job, then father can give the amount of remuneration as a gift.. isn't it?

Richa,

          if son resigned then there is no employer- employee relationship in future, now the question of salary will not arise and whatever amount the father will give the son will treated as a gift in cash and sec.56 (2) will attract and upto Rs. 50000/- per F.Y. will be exampt.

Richa

When son is in employment, then the salary paid is remuneration and cannot be termed as a gift.

However, when son has resigned from job, the amount given which should not be part of the settlement benefit, then it can be treated as a gift and section 56(2) will attract and upto 50,000 will be exempt from Tax in a Financial year.