Taxation of gift u/s 56 (2)???

First and foremost she has to account for the source of that much cash! It will be very difficult for you also to justify.

Friend she has PAN Card and there is no need to file ITR as long as income is below exemption limit. So for these many years it is not difficult for any to accumulate that much cash.

There is no need for gift deed rather obtain an affidavit from your mother to the effect that out of her long savings since last various year, she has gifted an amount of Rs. 5 lakh in your favour out of love and affection.This is more than sufficient and there are no chance of her trapping as feared.

Thank you Rajesh.

But what kind of Affidavit is needed. Can I have a specimen of that?

Also why in previous reply you said that she would have to justify that much cash source. And after taking gift is there any obligation on me to disclose this ITR.

there is no problem in Cash gift.

but there should be proper evidences of income of source..

ITR is not requried to file until income exceeds basic exemption limit.

I think gift deed will be a better way rathar than affidevit.

u r right in Loan case.

Yes , you can take that gift but make gift deed from Notery Public.

There is no need for filing ITR for that . 

Enjoy !

@ Gaurav: I have clearly mentioned that there is no proper source of income available with my mother as it is all from petty sources.

Anyway, thanks for your reply.

@ Sunil: Thanks for your reply.

But I would like to see reply from a person who has practically dealt a case like this. I know it is not a rare case. many of the CAs present on this forum would have handled this kind of case. Just waiting to see their suggestions.

I am afraid.If you deposit even in small amounts into the sb a/c. ultimately the amount so deposited will exceed he exemption limit and would attract income tax. Naturaly, while filing the income tax return, the source of income needs to be dislosed, which I think is impossible in your case.It is also not possible to pay Rs. 5 lakhs across the counter and get Banker's cheque, without indicating PAN number on the deposit slip, and without attracting the attention of the IT department in regard to high-value transaction!There is no immediate solution to your problem. At best it can be spread to three years - keeping in view the exemption limit which your mother may enjoy in a given financial year.

Thanks Rajesh for your suggestion.

But Without undermining anybody's ability or competence, I would like to say where are all the reputed CA's which are present on this club. It seems nobody is interested in this except us Final students.

I request esteemed members (CS, CAs etc.) to present their views on this matter.

Freind don't think like that ...

All the experts are here they alway's help Us in our query. You better ask your query to expert section brother....

All the best...