taxation for gift

Dear Arun,

If u want to gift Rs. 2Lacs then it will not be taxable in ur hands..Further u cannot claim any exemption/deduction of this amount..

"Further u cannot claim any exemption/deduction of this amount.." i didnt understand this clause...please can u elaborate on this?...

you are gifting this amount to your relative...this means money is going out of your hand....how can you pay tax? so you are not taxable.

Dear Aurn,

I meant that Gift to ur relatives will not qualify for any exemption/deduction under income tax act.

 Ya ! It will not qualify for any deduction / exemption as it is itself not taxable .

For the purpose of sec 56 (2) , any gift to relatives whether in cash or kind is not taxable.

mr.arun gift of Rs.2 lacs won't be taxable in ur hands.... no deduction/exemption for gift given to relatives....