Dowry exempt or taxable

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2016 Dear Experts,
Cash/car/gold (dowry) received on marriage
Is taxable or exempt if exempt weather
Deed for the same is mandatory or not
also let me know the section in which
dowry is exempt,

Regard
Devesh Rana

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

17 September 2016 Dowry is a gift at the time of marriage is exempt from Tax. Deed is not mandatory but to prove before the tax authorities in case of inquiry deed may be made.

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2016 Sir,
Can you pls tell tell me the section in which dowry is exempt

Upgrade to CAclubindia Pro. Subscribe Now!

Expert : Anonymous

Expert : Anonymous (Expert)

18 September 2016 Dear Devesh, Refer to section 56. Here the gift Income is taxed as income from other sources. however, amount received in marriage is exempt provided the giver of gift is gifting not beyond his status.

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2016 Sir,
The question is being arise here weather
Dowry will be consider in the definition of
gift or not if so? If dowry was demanded then any
Impact

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 September 2016 Dowry can be considered as gift even it is demanded.

Message likes : 1 times

Expert : Anonymous

Expert : Anonymous (Expert)

19 September 2016 Dear Devesh, Try and understand the situation. Demanding Dowry is a crime! Since it is illegal the whole amount earned shall be towards illegal sources and fully taxable. You want to declare it as illegal, go ahead. Else it would be wise to consider as a gift from relative in marriage "as per his status".