Gift to daughter

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Rajendra

Service

25 Points Posted on 03 July 2014

I have gifted Rs.Five Lakhs to my major daughter during FYI 2013-14. She has earned interest on Fixed deposits made out of gifted amount. She has no other income and eventually, her income is much below the taxable income.

My questions are as under:

1) Which ITR form is to be used by her?

2) Whether this gifted amount is to be mentioned under exempt income?

3) Whether I am required to show this gift amount in my ITR and if yes how and under which column?

-Rajendra

Replies (5)

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 03 July 2014

1. she should file itr-2....... 2. she is reqd to show that exempt income in her itr....... 3. you are not reqd to show anything in your itr.

praveen

Chartered Accountant

5709 Points Posted on 03 July 2014

She can file itr 1 Gift is not income so need not disclose the same You also Need not disclose anything Since her income is less than 500000 there is no necessity of filing return also

Malhaar V Kale

Chartered Accountant

74 Points Posted on 04 July 2014

Originally posted by : praveen
	She can file itr 1 Gift is not income so need not disclose the same You also Need not disclose anything Since her income is less than 500000 there is no necessity of filing return also

With all due repect Sir, I do not think she will be eligible for ITR 1 if interest from FD exceeds Rs 5,000/-.

Also, I did not understand why you said she would not be required to file ITR if her income does not exceed Rs 5,00,000/-. I am of the belief that 5,00,000 is not the limit.

Please correct me if I am wrong.

CA Deepesh Ruhela

Keen to Learn

1711 Points Posted on 04 July 2014

1. She need to file ITR 2 because exempt income is more than Rs.5000/-.

2. She is required to enter data of all income earned by her during the year. Show the Gift amount under exempt income.

3. You don't need to show anything in your ITR.

Guest

Posted on 06 July 2014

ITR–1 OR SAHAJ

This Return Form is to be used by an individual whose total income for the assessment year includes:-

Income from Salary/ Pension; or
Income from One House Property (excluding cases where loss is brought forward from previous years); or
Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Who cannot use this Return Form

This Return Form cannot be used by any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.

If you have foreign assets, you cannot use ITR-1.

If you have exempt income which is more than Rs. 5,000, you cannot use ITR-1.

ITR–2

This Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year includes:-

Income from Salary/Pension; or
Income from House Property; or
Income from Capital Gains; or
Income from Other Sources (including Winnings from Lottery and Income from Race Horses).

Further, in a case where the income of another person like one's spouse, child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories.

Conculsion : ITR 2 required to be filed