An Amount of 60 Lacs is Gifted to an assessee by his Father 25 Lacs and his Mother 35 Lacs out of their own Accumulated Funds for commencing a Sole Proprietorship Business.
How will the amount be Shown in the Income Tax Return of the Assessee and His Fathers and Mothers Return?
And under Which head the 60 Lacs Rupees be Shown in the Balance Sheet of the Assessee..?
Can Father Mother of an assessee gift the specified sum in CASH to the assessee??
30 March 2016
Gift to the relative is exempted under income tax. Father and Mother are covered under the defination of relative. Hence no tax at all provided proper Noterise Gift deed on record. Gift is a Capital Account transaction, hence no impact on profit and loss account. You can directly add the said amount under Liability Side - under the head of Capital Account and Asset Side - Cash Account (If in cash). Father/Mother can Gift to assessee in Cash provided in there Balance-sheet this much of Cash available.
Under the Capital Account, is It Essential to Show the Gifted Capital and Own Capital Segregated or just to put the whole amount of capital without segregation??
The amount has been wrongly reflected as unsecured loan in the IT return of the assessee for the AY 2013-14. Can that return be Revised and that same be shown at Capital Account..??
Is it Possible in any Ground for Revision of that Return?
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