Taxation about amount received from father

Hello Professionals, Please help with your expertise. My Father sold a house property in Pune in December 2014. He then transferred Rs. 8.5 Lakhs to me to my bank account. I am investing the same in my pvt ltf company as Subscripttion Capital.

Is there any provision in IT Laws under which I can avoid paying Income Tax on this Rs. 8.5 lakhs? Can I show this as a gift received from Father (relative).

If yes, where in the ITR Form should I mention this?

An early reply from experts here will be highly appreciated. Thanks in advance

Dr. Anand Wadadekar

Founder Director & CEO of Discovering Careers India

Replies (4)

Hi Dr. Anand Wadadekar 

No. If the above income, your father paid tax and then transferred the income to you mean not taxable. 

As per sec 56(2)(vii) of IT Act, gift received from a relative is not taxable u/h 'Income from other sources'

so you can avoid paying tax on 8.5 lakh if you show it as gift received from a relative-father.

Originally posted by : SHINY

Thank you Shiny.

 

Which ITR form should I file then, since I also have salary income too?

 

 

 

 

 

As per sec 56(2)(vii) of IT Act, gift received from a relative is not taxable u/h 'Income from other sources'

so you can avoid paying tax on 8.5 lakh if you show it as gift received from a relative-father.

 

Gift Received from relatives i.e. father is not taxable as rightly pointed out by Ms. Shiny. It is considered as a capital receipt and need not be shown in ITR at all. IT is not clear what incomes are you earning apart from salary. If it is only salary & bank interest then you need to file ITR1

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