Gift tax

Others 1521 views 3 replies

DEAR SIR,

 

SUPPOSE WIFE GETS RS 1 LAC (INTHE FORM  OF CASH) FROM HER REAL BROTHERS.IS THERE ANY GIFT  TAX OR ANY ANOTHER TAX?WHT IS THE LIMIT OF THE CASH THAT CAB TAKEN? ANY GIFT DEED TO BE DONE?WILL THERE BE ANY  KIND OF TAX BURDEN ON HER OR ON HER BROTHER?

 

THNX IN ADVANCE

Replies (3)

Gift in your case is not taxable.

hi,

Gifts received from any relative, as defined under Income Tax Act, is not taxable.

Relatives include :

  • spouse of the individual.
  • brother or sister of the individual.
  • brother or sister of the spouse of the individual.
  • brother or sister of either of the parents of the individual.
  • any lineal ascendant or descendant of the individual.
  • any lineal ascendant or descendant of the spouse of the individual.
  • and the spouse of the person referred to as aforesaid.

It is always adviced to maintain documentary evidence in respect of the gifts received, to avoid any dispute with tax authorities at a later stage.

This is particularly relevant in case the gift amount is substantial as in your case and also where it is received from relatives. it is advisable to have gift deed/letter of understanding exchanged and kept in records by the recipient of the gift for future reference..

 

 

Thanks

Agree with Mr. Nish*th ...


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