10 October 2009
Please confirm whether the transaction is permissible under the Income Tax Act.
If so, what is the limit for the value of GIFT in CASH or KIND.
It may please be noted that if SON deposits the entire GIFT amount Rs.100000/-in his bank account, will there be any non-compliance in the Income Tax Department angle.
10 October 2009
gift in kind from relative is also exempt
Guest
Guest
(Querist)
10 October 2009
Again, I am developing some more doubts.
SON deposits the entire GIFT amount Rs.100000/-in his bank account.
1. Father is not an IT Assessee. 2. Father does not have any bank account. 3. Father does not know anything about IT or any matters like compliances / non-compliances. 4. Father gifting the amount because the SON is starting a new business. 5. Father's gift is purely out of his earned money for the many years. Will father have any problem due to this transaction. 6. While SON has 100% no problem in receiving GIFT of cash Rs.1 Lac, it is requested to spell out the consequences for Father due to the transaction.
Await the views of experts.
Also please confirm the GIFT exemption from relatives is as per Budget 2009.
10 October 2009
The Income Tax Act 1961 (the Act) has been amended with effect from 1st October 2009 to provide that any gift-in-kind, being an immovable property or any other property, the value of which exceeds Rs.50,000 (rupees fifty thousand), will become taxable in the hands of the donee, being an individual or a Hindu Undivided Family (HUF), as income from other sources under clause (vii) of sub-section 2 of section 56 of the Act. The following types of gifts will, however, not be subject to tax, i.e. gifts (a) from a person who is a relative; (b) on the occasion of marriage of the individual; (c) under a will or by way of inheritance; (d) in contemplation of death of the donor; (e) from any local authority as defined in the Explanation to section 10(20) of the Act; (f) from any fund or trust established under section 10(23C) of the Act; (g) from any trust or institution registered under section 12AA of the Act.
Relative is defined in the Act as (i) spouse; (ii) brother or sister; (iii) brother or sister of the spouse; (iv) brother or sister of either of the parents; (v) any lineal ascendant or descendant; (vi) spouse of any of the relative at clauses (ii) to (v); of the individual. Gifts received from these relatives will not be subject to tax.
CAclubindia
