My father-in-law wants to gift a lakh of rupees to me. Is it taxable in my hands. I am an income tax payer.
8 Replies
Bhuvnesh
(Chartered Accountant)
(101 Points)
Replied 04 October 2007
No, gift tax wont be charged on it. Income Tax Act provides exemption from gift tax in case gifts in the form of cash are received from specified persons.
Such specified persons covers Father in Law as well.
Ravikumar.G
(Consultant)
(18525 Points)
Replied 04 October 2007
What my friend said is perfectly correct. The following details for your value addtion.
Applicability:
Individual and HUF
Taxability:
Any sum of money, aggregate value of which exceeds Rs.50,000 /- is received during the previous year without consideration, by an Individual or a HUF from any persons on or after 01.04.06 then the whole of the aggregate of such sum will be taxable.
Exceptions:
Gifts received from the following persons not taxable:
1) Relative
2) On the occasion of the marriage
3) Under a will or by way of inheritance
4) In contemplation of death of the payer
5) Any local authority
6) Trust or Institution u/s 10(23C)
7) Trust or Institution u/s 12AA
Relative means:
a) Spouse of the Individual
b) Brother or sister of the individual
c) Brother or sister of the spouse of the individual
d) Brother or sister of either of the parents of the individual
e) Any lineal ascendant or descendant of the individual
f) Any lineal ascendant or descendant of the spouse of the individual
g) Spouse of the person referred to in clauses (b) to (f) above
Notes:
1. Subject to clubbing provisions applicable for Gift received from Spouse and Father-in-Law.
2. The individual can receive gifts without attracting tax also from lineal ascendants and decedents of the individual other than those mentioned in the above chart.
Ravikumar.G
(Consultant)
(18525 Points)
Replied 04 October 2007
Clubbing provsion is also applicable for you.
Nitesh Jain
(CA Final Student & Manager(Accounts & Taxation))
(91 Points)
Replied 04 October 2007
No, You cannot do so. The deduction will be available only if the rented residence is in the city where you are employed.
ravi sankar
(Chartered Accountant)
(157 Points)
Replied 05 October 2007
yes to your point, but probably there should be a gift deed in writing and registered accordignly. the gift deed registration may cost only 1000Rs.
student
(WORKING)
(757 Points)
Replied 25 January 2008
it is not mandatory that gift deed should be executed on stamp paper .It can be executed on a simple piece of paper or orally.
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 26 January 2008
Any gift given by relative is not taxable in the hands of Assessee.
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