Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

How to declare gift paid to friend under ITR1

347 views

Save Share

Sri ram

26 Points Posted on 05 August 2022

I had gifted Rs. 1,00,000 to my friend though a gift deed. Understood he has to pay tax as I don't fall under relative. But my question is how Can i declare this expenses in my ITR?

1. As I am a employee & filing ITR1 regularly, Is there a provision to declare the same during my return fillings?

2. Do I need to declare to employer with supporting documents. so he can incorporate & deduct in form 16 itself. Is it possible, if so under what section I should declare?

Thanks in advance.

Replies (2)

Quick Summary

This discussion explores whether an individual filing ITR1 can declare a gift they have given to a friend. The consensus is that as the giver, you do not declare the gift as an expense on your Income Tax Return (ITR). The recipient is responsible for declaring and paying any applicable tax on the gift received, provided it exceeds the threshold and is not from a specified relative.

CA Raj Doshi

Practising CA

5649 Points Posted on 05 August 2022

1. Not possible to disclose in ITR
2. It is not your Income so why will there be a need for you declare to your employer. You are the giver and not the receiver.

Regards,
CA. Raj Doshi
*R C D & Co.*
*Chartered Accountants*
*Understanding Entrepreneurs, Transforming Businesses*

*Linkedin* - https://www.linkedin.com/in/ca-raj-doshi-5b390777/

*Website* - www.rcdco.in