24 November 2009
Can a married daughter take tax free gift from her mother? if a married daughter gets a sum of Rs 1 lakh(i.e. more than Rs 50,000)from her mother, is it taxable?
Gifts are exempted from India gift tax in the following cases:
* The gift was given by a blood relative, irrespective of the gift value.
* Immovable properties located outside the country.
* Movable properties outside the country, unless the donor – o Individual:is an Indian citizen, who is originally a resident of India, or o No-individualis resident of India during the year of gift * Out of balance gift by NRI (Non-Resident Indian) in his Non-resident account. * Foreign currency gift of convertible foreign exchange, remitted from overseas by an NRI to a resident relative. * Foreign exchange asset gifted by NRI to his/her relatives. * Special Bearer Bonds, 1991. * Saving certificates issued by the Central Government (notified as exempted). * Capital Investment Bonds up to Rs. 10,00,000 per year. * Relief Bonds gifts by an original subscriber. * Gifts of Certain bonds from the NRI to his/her relatives, which are subscribed in foreign currency (specified by the Central Government). * Gift to government or any local authority. * Gifts to any charitable institutions. * Gifts to notified temples, churches, mosques, gurudwaras and other places of worship. * Gift to children for educational purpose (Reasonable amount). * Gifts by an employer to its employees in the form of bonus, gratuity or pension. * Gifts under will. * Gifts in contemplation of death.
CAclubindia
