Cash gift exceeding 50000 to a relative

This query is : Resolved

Harsha (Querist)
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05 January 2016 Hello

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...????

Ankur Singhal

Ankur Singhal (Expert)
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05 January 2016 Dear
Donor will not get any deduction of gift from his income.
As donor gifts from his taxable income hence taxable in hands of donor.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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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.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.