gifts under income tax

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Dhana Sai

244 Points Joined April 2017

my father recieved 10,63,455 from his cousin . he is not a relative as per income tax act.

reason : my dad's cousin's mom mentioned in her ""will"" that "the balance on 30.6.2019 in andhra bank will be recieved by guptha(my father) . also mentioned that she gives that amount out of affection. since she died her son transferd to my dad's bank account.

is that amount recieved is taxable as per income tax act

thank u

Replies (3)

abhishek tiwari

79 Points Joined April 2017

Taxation on gift provided U/S 56(2) of income tax act 1961. As per income tax act gifts received from non relative are taxable in the hands of recipient under the head of other Sources and there is no taxation for the donor.

Contact + 91 7000879216

Dhana Sai

244 Points Joined April 2017

in the same section ther is a point that

gifts recieved under will is exempt

what about this

abhishek tiwari

79 Points Joined April 2017

In the case of Income-tax Officer v. Mahabir Jute Mills Ltd. [1983] 17 TTJ (ALL.) 49 it was held that cousins cannot be considered as relatives. Hence any gift received from non relative of any nature whether by way of will or anything else It is wholly taxable Contact 7000879216