hi every one,
i want to gift Rs 2,00,000 equally among four of my relatives(according to definition in 56(2)).all four doesnt have any income for the yr 2009-2010.
what is the tax i have to pay for this amount.i have already completed 80c exemption of 1,00,000 through my PF.
if at all i donot need to pay tax please explain the procedure where i can get tax beneifit for the above sum of Rs.2,00,000
if u need any more information about my taxable income i am ready to give
thanks in advance.
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....
CAclubindia
