Taxation under gift

gud mrng scholers.....smiley

suppose mr. X has a black money and he is planning to convert it into white. now he give this money to his frnd Y in cash and tell him that he(mr.Y) will give this money on his(mr.X) marriage to him (mr.X).

as above said Mr. Y gave money to X on his marriage.

and mr. X shown this money in his return of income as he received gift on his marriage,...

now my question is that  in return of Mr. Y  is this money gave by him as a gift to Mr. X is necessary to show?

and can IT department has right to take this money under assessment and take the detail of money as he gifted to mr.X.?????? 

Replies (2)

hello,

It will depend on how much mr Y gifted to X ... such amount can be shown under the head capital account as this gift is not related with the business of mr Y ... 

IT department can take action if Mr Y unable to prove from where such amount is generated, but it depends on materiality of amount..

According to me it is not required to Show In IT Return of Mr.Y,Since it is Application of Income Which Departmentwont bother at all (Since Mr.Y is an Individual).

 

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