Gift

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Querist : Anonymous

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02 September 2018 My daughter earns Rs300000 from giving tutions to children.can she give me cash gift of Rs250000. Is there any violation of income tax laws.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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02 September 2018 She can gift you any amount,no issues as the gift between relatives is exempt.

But the income tax on her earnings should be assessed in her hands.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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02 September 2018 Also note that in case you invest this money elsewhere any get any income from such investments, then such income will be clubbed with your daughter's income and assessed to tax

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Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2018 How will i determime what amount is earned.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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02 September 2018 Lets say that you make a FD from what she gives. Then the income earned will be interest from such FD

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2018 I have invested that amount in land and have no income till now.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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02 September 2018 Then no need to worry about income tax now

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2018 In future if i give on rent then income may come in that case what will be the treatment.

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K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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02 September 2018 That rental income will be added to your daughter's income and tax be paid by her

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2018 This clubbing of income applies when gift is received from spouse .I am being told by my CA that clubbing will not apply when gift received from daughter.please clarify the matter.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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02 September 2018 Clubbing of income is not restricted to spouses only. It includes other relatives as well

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2018 Is there any criteria for clubbing income for gifts received.which relatives are exempted from provisions of clubbing income.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2018 I would invite other experts also to give their opinion regarding clubbing of income for gifts received from relatives.

CA. Aryendra

CA. Aryendra (Expert)
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03 September 2018 Dear Sir,

No restriction under income tax act you can accept any amount of gift in cash. But i am opinion of that, please deposit the cash in daughter account and accept the gift through account payee cheque. Do not challenge provision of section 68 and provision of section 269ST – Mode of Undertaking Transaction of income tax act.

"This clubbing of income applies when gift is received from spouse .I am being told by my CA that clubbing will not apply when gift received from daughter.please clarify the matter."

* Please made a vehicle for Gift and made irrevocable gift deed on stamp paper.
* Clubbing provisions will not be applicable gift from major daughter or to daughter.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2018 But other expert sri K .Sriniwas told clubbing applicable on case of major daughters also.pl clarify if possible so doubts of sri K .Sriniwas be cleared.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2018 There are 2 opinions from 2 experts .how will I judge which opinion is correct.pl clarify the matter so that I can follow right opinion.I request other experts also to give their valuable opinions.

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2018 Why no expert is replying .

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2018 Mr k srinivas opinion was wrong for provisions of clubbing of income