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How to treat money received from brother

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Abhishek

NIL

159 Points Posted on 24 February 2020

Hello, there is a friend of mine she was separated from her husband and staying with her family now and her brother give her 30-40k per month for household expenses for herself and mother. but now she have started doing some part time work. so can anyone tell me how to treat the money which she receives per month from her brother as thats not her income and her brother is paying tax on that amount how to treat that in her return.

Replies (4)

Quick Summary

This discussion clarifies the tax treatment of regular financial support received from a brother. The consensus is that such funds are considered gifts from a specified relative and are not taxable for the recipient. While a formal deed for each transaction isn't necessary, bank statements serve as proof of the gift in case of any tax scrutiny. The brother is paying tax on the money before gifting it, so the sister does not need to pay tax on it.

Kapil Jain

4 Points Posted on 24 February 2020

No it not taxable because gift from an specified relative is not to be taxed under section 56(2)(x)

Abhishek

NIL

159 Points Posted on 24 February 2020

Okay thank you for replying. please tell me one more thing does it required any deed or without deed will there be any problem in future. as he sends her money every month so deed for every transaction will not be possible.