Correct treatment of tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2013 My father gift me 10 lakh on 25/06/2012.

According to section 56 (2) vii any sum of money received from relative is exempt so that I am not liable to pay tax on 10 lakh . However according section 47 it also exempt in hand of my father. Whether it correct treatment according to income tax act 1961. if no please tell me the correct treatment of tax and also tell me if any section is also applied to above mention amount.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

30 November 2013 Your father has gifted you Rs. 10 Lakh.
.
Your view is correct that this is not taxable U/s 56(2)(vii) in your hands.
.
There is no tax on the Donor i.e. on the person who makes a gift as Gift Tax Act had been repealed from 1998.
.
Section 47 is applicable only when Section 45 can be applied.
.
Further Section 2(14) defines Capital Assets as "property of any kind".....but "cash" is different from a "kind".
.