16 June 2016
RESPECTED SIR, A PERSON MR. A HAS ONLY SALARY INCOME OF RS. 370000. HE HAS A SON MR. X WHO HAVE NO SOURCE OF INCOME. IF MR. A GIFT RS. 120000 TO HIS SON MR. X THEN WHAT IS THE EFFECT OF SUCH CASH GIFT OF RS. 120000 ON MR. A AND MR. X.. ALSO WHAT INCOME SHOULD MR. A SHOWS IN HIS RETURN.
16 June 2016
income from gifted amount will be add in the father income u/s 64(1) if son in minor then Rs. 1500 will dedcut under this section in father computing taxable income.
16 June 2016
sir, i am asking the income from the gifted amount, not the gifted amount. any income earn by son on gift amount will include in father income, for example Rs. 120000/- son earn 3% intt in saving a/c in year then 3600/- will add in the father income. there is no addition of Rs. 120000/- its tax free for son under the income tax act. its relative gift.
CAclubindia
