Please let me know the taxability in the hands of donor of cash gift exceeding Rs 50000 to a relative. The donee will not be taxed for the gift as received from from relative but will donor get the deduction of cash gift from his income...????
05 January 2016
Gifts received from any relative, as defined under the Act, is not taxable. Relatives include spouse of the individual; brother or sister of the individual; brother or sister of the spouse of the individual; brother or sister of either of the parents of the individual; any lineal ascendant or descendant of the individual; any lineal ascendant or descendant of the spouse of the individual; and the spouse of the person referred to as aforesaid. No Tax Treatment on the hands of recipient.
03 October 2021
Donor cannot save any tax by gift to relative. He has to pay tax over his total income including the gift amount. Cash transactions should be avoided.
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