Is it a loophole in income tax act?

Tax planning 472 views 11 replies
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Consultant
27 Points Joined March 2017

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

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On 23 May 2018 at 10:59 Report
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SEO Sai Gr. Hosp.
196688 Points Joined July 2016

That loop hole now plugged by sec. 269ST.......

And those gifts were required justification or verification from donor/s........

2 Reply
On 23 May 2018 at 11:09
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Consultant
27 Points Joined March 2017

Thaks for the reply sir.

But what if we dont know who is donor ?? Its difficult to identify donor on marriage.

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On 23 May 2018 at 11:13
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SEO Sai Gr. Hosp.
196688 Points Joined July 2016

The responsibility to justify the gift/donation lies on Receiver, otherwise it will be declared as undisclosed income....... and then the consequences.......

2 Reply
On 23 May 2018 at 11:32
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Consultant
27 Points Joined March 2017

Thanks for clarification sir,

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On 23 May 2018 at 11:56
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SEO Sai Gr. Hosp.
196688 Points Joined July 2016

Most Welcome,  Dear......

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On 23 May 2018 at 12:02
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51 Points Joined May 2018
Will the gift received on occasion of marriage above 2 lakhs come under the purview of 269ST??
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On 23 May 2018 at 14:18
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SEO Sai Gr. Hosp.
196688 Points Joined July 2016

Cash Gifts......... only.....

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On 23 May 2018 at 14:37
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Financial advisor
589 Points Joined December 2014

Since the receiver has record the name and address of doner with address and the gift received more than Rs. 10000 in cash on the occassion of marriage, what are the consequences?

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On 23 May 2018 at 17:45
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Financial advisor
589 Points Joined December 2014

from one person/relative.

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On 23 May 2018 at 17:46
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SEO Sai Gr. Hosp.
196688 Points Joined July 2016

If the relatives are ready for confirmation of Gifts, why can't you accept cheques !!

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On 23 May 2018 at 18:03
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Consultant
27 Points Joined March 2017

It will be exempt from Tax if you received gifts from your friend or relative on occasion of marriage and you have record of it. (even if amount exceeds Rs. 2,00,000)

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On 23 May 2018 at 18:21


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