Income tax implication

dear sweta

gift made by a relative is exempt whether it is in cash or kind and whether it is beyond rs.50000.

regards

tarun rustagi

Dear Sweta,

The transaction of Gift will not attract any tax implications..being exempted u/s Proviso to 56(2)

Its only when the income is earned out of this money then the tax implications will arise.

If son is minor then it will be clubbed with the income of that parent whose Total Income is higher excluding this income. (Exemption upto Rs. 1,500 is available)

In case of a major son the income will be taxable in the hands of son & no treatment will be done in the hands of mother.

you can receive any amount from your relatives without paying any income tax as there is no gift-tax at present. There are certain provisions and important points which we will discuss in this post. Gift can be received by the following ways.

From Relatives
Relative means:

1. Spouse
2. Brother or sister
3. Brother or sister of the spouse
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendent(A lineal descendant is a person who is in direct line to an ancestor, such as child, grandchild, great-grandchild and on. Similarly, a lineal ascendant is parent, grandparent, great-grandparent and so on.)
6. Any lineal ascendant or descendent of the spouse
7. Spouse of the person referred to in (2) to (6)