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How fill cash gift entries in ITR

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Kuldeep Singh

233 Points Posted on 05 September 2024

My mother is house wife and gets cash gifts from relatives :

1. Cash gift 150000 from husband in may2023

2. Cash gift 190000 from husband in june2023

3. Cash gift 160000 from son in july2023

4. Cash gift 180000 from son in Jan2024

5. Cash gift 100000 from daughter in mar2024

*Total cash gift recevied in FY2023-24 = 780000

I wanted to two things:

A). is there any tax liabilities on my mother ? I think gift from relatives will be exempt from taxation u/s 56(2) of I.T act.

B). Where fill cash gift entries in ITR1 on IT portal ?

C). ITR file in this case compulsory or not ?

Replies (2)

Quick Summary

This discussion clarifies how to handle cash gifts received by a housewife from relatives for Income Tax Return (ITR) filing. Gifts from specified relatives, including spouses, parents, and children, are exempt from tax under Section 56(2)(x) of the Income Tax Act. These exempt gifts should be reported in the 'Exempt Income' schedule under 'Others – gifts from relatives' in ITR1. While the gifts are exempt, it's advisable to execute gift deeds for documentation. Additionally, be mindful of Section 269ST, which imposes penalties for cash transactions of Rs 2 lakh or more from a single person on a single day; larger gifts should ideally be made via bank transfer.

Pranav Aggarwal

311 Points Posted on 06 September 2024

Yes the whole gift is exempt in Income tax act

you can do 2 things in it

1. Execute gift deed for all transactions
2. enter total gift in exempt income schedule under other as gift from relative

Aashok Kumar Sharma

Finance/Compliance Consultant

73958 Points Posted on 07 November 2026

Gifts from relatives are exempt:

• Cash gifts from a husband, relatives (parents, siblings) and others in the relative list are exempt under Sec 56(2)(x). Report them in Schedule EI ("Others – gifts from relatives"), optional but useful.

• Gifts from non-relatives exceeding Rs 50,000 in total in the year are taxable under Other Sources.

• Cash of Rs 2 lakh or more from one person in a day or for one occasion breaches Sec 269ST. Penalty on the receiver equal to the amount (271DA). A Rs 1.5 lakh cash gift from the husband is fine. Larger ones should be by bank.

• Income earned on money gifted by the husband (FD interest etc.) is clubbed with the husband's income (Sec 64(1)(iv)).