Is it a loophole in Income Tax Act?
Gift received on the occasion of Marriage :-
Gift received from any person other than relative in excess of Rs. 50,000 is taxable in the hands of the person receiving the gift. However there are few exception to it and one of it is Gift received on the occasion of the marriage.
It means that if gifts were received on the occasion of marriage it is exempt from the tax whether received from relative or any other person irrespective of amount exceeds Rs 50,000.
A person who may have black money can take shelter of this and show in his return of income, black money saved (It can be in crores) as gift received on the occasion of marriage. In this way its easy for person to convert its black money into white without paying single penny of Income Tax.
Suggestion from the experts on it would be great help to understand it better.
Thanks
Shah Raj Mukeshbhai
CAclubindia
