I want to gift 3lac to my brother , here i want to know where it will effect in Income tax whether in Balance sheet or capital account and under what head.
10 April 2020
In income tax: no taxation on Gift to relatives. If you are having Capital of Rs 5 Lac and out of it making a gift to your brother of 3 Lac your capital will reduce to 2.00 Lac,
10 April 2020
It's not a expenditure. You give Your money to Your brother. Then it will less Your capital account (from. Your pocket).
So it will be accountable in Your capital account and the capital account reducing as per Mr CA PARAS BAFNA...
CAclubindia
