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Gift transaction from relatives allowed

kollipara sundaraiah (B.com) (2916 Points)

15 November 2023

it assessess cash gift from relatives different dates details mentioned below
1.cash gift from mother rs:190000/- through on cash mode dt:10-05-22
2.cash gift from brother rs:180000/- through on cash mode dt:25-05-22
3.cash gift from husband's brother rs:170000/- through on cash mode dt:17-06-22
4.cash gift from mother's brother rs:160000/- through on cash mode dt:24-06-22.
question:
assessess above gift from relatives transaction allowed in it act

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6 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3303 Points)
Replied 15 November 2023

Gifts received from specified relatives are not taxable under the Income Tax Act . The term “relative” is defined differently for individuals and Hindu Undivided Families (HUFs). For individuals, a relative includes the spouse, siblings, siblings of the spouse, parents’ siblings, lineal ascendants or descendants, and their spouses. For HUFs, any member of the HUF is considered a relative .

Please note that gifts received from friends are taxable if other criteria of taxing gift are satisfied .

sabyasachi mukherjee (26189 Points)
Replied 15 November 2023

Ok its related

kollipara sundaraiah (B.com) (2916 Points)
Replied 15 November 2023

Sec 68,sec 69 provision applicable in it act

Musrath Shaik (175 Points)
Replied 16 November 2023

The Income Tax Act in India does not specifically tax cash gifts received from relatives. Gifts received from specified relatives are generally exempt from income tax under Section 56(2)(x) of the Income Tax Act. Specified relatives include parents, siblings, and other close relatives.

Here's how the cash gifts you mentioned may be treated:

Cash Gift from Mother (Rs. 190,000):
- Gifts from a mother are generally considered exempt from income tax.
Cash Gift from Brother (Rs. 180,000):
- Gifts from a brother are generally considered exempt from income tax.
Cash Gift from Husband's Brother (Rs. 170,000):
- Gifts from relatives, including a brother-in-law, are generally considered exempt from income tax
- For further more detailed information on this topic visit: GST Implications on Gift by Employer to Employee
  
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CA ALOK KUMAR (FCA, AMLS,GSTP) (615 Points)
Replied 17 November 2023

In India, the Income Tax Act governs the taxation of gifts, including cash gifts. According to the provisions, gifts received from certain relatives are exempt from tax. These relatives include parents, siblings, and other close relatives. Here's how the gifts you mentioned are treated under the Income Tax Act:

1. Cash Gift from Mother (Rs. 190,000 on 10-05-22) : Gifts from mother are exempt from tax. There is no upper limit on the amount that can be received tax-free from your mother.

2. Cash Gift from Brother (Rs. 180,000 on 25-05-22) : Gifts from siblings are also exempt from tax. This amount is not taxable.

3. Cash Gift from Husband's Brother (Rs. 170,000 on 17-06-22) : Gifts from a brother-in-law (husband’s brother) are considered exempt under the Income Tax Act.

4. Cash Gift from Mother's Brother (Rs. 160,000 on 24-06-22) : Gifts from an uncle (mother's brother) are also exempt from tax.

In your case, all these gifts are exempt from tax as they are from relatives as defined under the Income Tax Act. It's important to note that although these gifts are not taxable, the Income Tax Department may scrutinize large cash transactions. Hence, maintaining proper documentation and proof of these transactions (like gift deeds or confirmation letters) is advisable in case of any inquiry from the tax authorities. For support & guidance, you may visit and consult www.caalokkumar.com