24 July 2008
ANY SUM OF MONEY RECEIVED IN CASH IS TAXABLE. BUT IF I HAVE NOT RECEIVED IN CASH BUT THE DONOR HAS PAID MY SHOPPING BILLS ,THEN IS IT TAXABLE. THE BILLS ARE IN MY NAME WHICH I HAVE PURCHASED FOR MY HOUSE BUT SOMEONE ELSE MAKES THE PAYMENTS . THEN WHAT HAPPENS. KINDLY LET ME KNOW. THANKS
24 July 2008
In case bills are in your name, it suugests that you have purchased the items billed on you. As such, the cash payment made by the donor may be held as a cash gift to u. It can not be argued that the gift is otherwise than as cash. Even, the cash receipt will be issued in your name as a discharge of liability due against the said bill. Under the circumstances, the flow of transactions will itself suggest that u have received cash and paid the bills.
CAclubindia
