GIFT FROM FATHER'S SISTER

This query is : Resolved

Sunil (Querist)
Follow

23 September 2009 My son is now over 18 years and had received gift from my sister to purchase a 2 wheeler. Which ITR Form has to be used and under which section should the amount be entered in the exempted income as gift is from father's sister (relative as defined).

C.A.Harish Singh

C.A.Harish Singh (Expert)
Follow

23 September 2009 ITR- 1 should be used and that gift will exempted u/s 56(2).

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
Follow

23 September 2009 Hi Sunil,

Gift is not income under any of the five (5) heads of income as per Income Tax Act.

Gift Tax means tax payable on gift by the person making the gift and not in the hand of the recipient of the gift.

Only income arising from the gifted property is taxable in the hands of the person who received the gift.

So receiving of gift is not an income and not to be disclosed in any itr form.

If you are interested to know more please check
http://www.incometaxindia.gov.in/GIFT%20TAX%20ACT.asp

Thanks
Sanjay

Upgrade to CAclubindia Pro. Subscribe Now!