RECEIVED CASH GIFT ON ENGAGEMENT

Marriage is not limited to a single ceremony. It consists of ceremonies before, during and after wedding. Often, engagement, ie. exchange of weding rings marks the beginning of the institution of marriage and may end with weding reception. The engagement is also solmonised in the presence gatherings of relatives from both the side, priests etc.

The narrow view of limiting of marriage to a particular event/ceremony does not seem to be correct.

In my view, gift received at the time of engagement is well within the meaning of gift received at the time of marriage.

The answers are really very complicated rather then the question.

Accrding to section 56 (2)

The gift is

exempt on the occasion of marriage and not on the day of marriage, hence gift

received on tilak, tika and similar religious function prior to marriage day will also

exempt from tax. Remeber !!!!!!!!!  dont deposit cash of rs. 10 lakh or more in single saving bank a/c, otherwise it will fall in AIR criteria and case will selected for scruitany u/s 143(3)

Originally posted by : Shyam Lal Naik
	Marriage is not limited to a single ceremony. It consists of ceremonies before, during and after wedding. Often, engagement, ie. exchange of weding rings marks the beginning of the institution of marriage and may end with weding reception. The engagement is also solmonised in the presence gatherings of relatives from both the side, priests etc. The narrow view of limiting of marriage to a particular event/ceremony does not seem to be correct. In my view, gift received at the time of engagement is well within the meaning of gift received at the time of marriage.

 Agree. But if their is major time between Engagement and Marriage then it would be dificult to prove that engagement is part of marriage cerimony.

1) I think that the gift received from the to be In-Laws is not exempt from tax as they are not your relatives as on this date.

2) Further if you disclose it anywhere that you have received gift from your to be in-Laws, it may be treated as dowry and the sections of Dowry Prohibition Act 1961 will accordingly apply. (you should always keep in mind that relations might turn bitter at anytime)

3) Depositing Cash of Rs. 10 Lacs in Bank will certainly invite Income tax's attention.

4) Why your In-Laws gave you gift of Rs. 10 lacs in cash. This also means that this may be unaccounted money. So by declaring that you received Gift from your to be In-Laws, you will certainly be taxed and your In-laws will also be taxed and may be queried for undisclosed income?

Instead it is a better, spend the amount in cash itself on your marriage or buy Gold.

OR

Declare the said Gift as "Income from Other Sources" pay tax on it and relax.

Don't complicate your Life, simplify it.

Mr. Shivang can u pls tell me, what is the limit of registration in service tax for transporters?????????

@ richa... at 9 lacs service tax registration to be done and to be charged from 10 lacs...

Gift received Rs.10L from ..in law . this gift fully exempt in case of marriage.

futhe u should be collect  PAN and address for ur futher convneance

this amount u will deposit in ur bank

GIFT RECD ON ENGAGEMENT IS NOT A GIFT RECD ON MARRIAGE AND HENCE TAXABLE IN THE HANDS OF DONEE

doubt: But engagement is it somewhat related to Marriage only know?  why not it be considered for exemption?

ENGAGEMENT IS DIFFERENT FROM MARRIAGE, IF ENGAGEMENT AND MARRIAGE TAKES PLACE SIMULTANEOUSLY  EXEMPTION CAN BE CLAIMED.

I agree with CA Shivang here and my views are also same on the case details.

Originally posted by : Rishab
	1) I think that the gift received from the to be In-Laws is not exempt from tax as they are not your relatives as on this date. 2) Further if you disclose it anywhere that you have received gift from your to be in-Laws, it may be treated as dowry and the sections of Dowry Prohibition Act 1961 will accordingly apply. (you should always keep in mind that relations might turn bitter at anytime) 3) Depositing Cash of Rs. 10 Lacs in Bank will certainly invite Income tax's attention. 4) Why your In-Laws gave you gift of Rs. 10 lacs in cash. This also means that this may be unaccounted money. So by declaring that you received Gift from your to be In-Laws, you will certainly be taxed and your In-laws will also be taxed and may be queried for undisclosed income? Instead it is a better, spend the amount in cash itself on your marriage or buy Gold. OR Declare the said Gift as "Income from Other Sources" pay tax on it and relax. Don't complicate your Life, simplify it.

 A very practical answer given by Rishab. kudos!!!

However if the money given is accounted money, it can be considered "on occasion of marriage" as engagement is part of the marriage.