Tax on money sent from my sibling in us to my bank account?

Tax queries 872 views 17 replies

Hey

Suppose A & B (friends) are resident in india. A's annual taxable income is 12 Lacs. He gifts Rs. 1 Lac to B out of taxable income. Gift deed executed. What is  his taxable income ? 11 lacs or 12??.

If it is 12 does it mean, donor doesnt get any benefit in the year of gifting??

Replies (17)

Hey

Suppose A & B (friends) are resident in india. A's annual taxable income is 12 Lacs. He gifts Rs. 1 Lac to B out of taxable income. Gift deed executed. What is  his taxable income ? 11 lacs or 12??.

If it is 12 does it mean, donor doesnt get any benefit in the year of gifting??

How can A get deduction for Gift to B? ( Unless B is a charitable institution registered and eligible for 80G) A's income will still be 12L

B's income will also include 1L gift received from non relative.

In other words gifting to others does not reduce income of donor whether the donee is relative or non relative.

But if the donee is a relative, the gift will not be taxable in his (donee's) hands.

DTAA is Double Taxation Avoidance Agreement between two countries.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register