Is this gift taxed?

1070 views 7 replies

Hi All

My Father's Sister (Bua) who is a US citizen wants to gift me and my father US dollars through a bank transfer. The amount is around 10000 USD per person. would this amount be taxable in india for me and my father. This amount would be transfered from her savings account in US bank to our saving's account in india.

Waiting for respones...

Replies (7)

I don't think this amount will be taxed.

Gifts from relatives are Tax-Exempt

Any gift received from relatives of any amount during financial year is completely exempt from tax. Hence, it's crucial to understand the meaning of the expression 'relative' for this purpose. Explanation to Sec. 56(2) (vi) provides that the expression "relative" means:

  • Spouse of the individual;
  • Brother or sister of the individual;
  • Brother or sister of the spouse of the individual;
  • Brother or sister of either of the parents of the individual;
  • Any lineal ascendant or descendant of an individual;
  • Any lineal ascendant/descendant of spouse of the individual

Accordingly, in your case, Gift will not be taxed.

it is exempt as it is a gift from relative

not taxable.....

Not taxable.  Make a gift deed in a requisite stampt paper showing the details of amount gifted.

but it is advisable that you make a gift deed.

Hi Bobo,

First of all there are two transaction:-

1.Gift to your father:-It will be exempt as gift is received from a relatve(his sister).

2.Gift to you:-It will also be exempt as gift is received from a relative(sister of parents).

Pls. note that two gifts deed should be executed for this purpose.

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