23 March 2012
Dear Sir/Madam, I am filing my returns for the 1st time as i was minor in previous year.
I have cash of Rs.3,50,000/- accumulated from childhood by way of gift received from relatives and other people on different occasions.
I asssume i would not be liable to pay income tax on Rs.3,50,000 as i would state that i had received these gifts of xyz amt. below 50000/- in different years from the year when i was born.
Is my assumption justifiable? What are the practical consequences and what are the measures/evidences that i must take to justify my claim against ITO.
25 March 2012
Dear Sir, but even in practical scenario children always receive some cash of Rs.500/- to Rs.1000/- whenever a realtive comes after a long time or in different cultural occasions.
26 March 2012
During minority income of minor is clubbed with income of parent - sect. 64. Where the amount was deposited or lying since child hood? Interest income? No prudent parent will keep the cash of minor but usually it is invested to earn income. Sources of gift & proof ? If not proved parents case may be reopened and amount may be taxed in his/her hand? Reasonable cash may be available but Rs. 350000/- is not small amount, which is claimed as receipt from relatives, not deposited any where but is in cash.
CAclubindia
