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Money received from family members exceeding 50000

Abhishek (NIL) (124 Points)

25 July 2021  

What should be the treatment in case if a sister received money from brother and mother every month around 20000 total, for her house expenses. which comes around 240000 per year how to treat this amount as she have started small business from which she is getting around 300000. there is no investment done in last year FY 2020-21,  How to treat money received from bother & mother.

 4 Replies

Ankita Jain (CA in practice) (175 Points)
Replied 25 July 2021

Gift received from relative is exempt from Income tax. And not to be included in the total income. In this case, whole 240000 is exempt.
Any other business income shall be liable to tax under the normal provisions of the Act.

Abhishek (NIL) (124 Points)
Replied 25 July 2021

Okay, then the limit of Rs 50000/- is not applicable in this case.

1 Like

Sourav (Student) (23865 Points)
Replied 25 July 2021

Not required to show it is exempt as it is received from relatives

Nidhi (Chief Accountant) (2060 Points)
Replied 29 July 2021

No, Limit of Rs. 50,000/- is not applicable in case money are received from relatives.
1 Like

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