Gift Tax

This query is : Resolved

Mayank (Querist)
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13 April 2009 [1] If I receive in CASH Rs.10 Lac gift from a NRI Friend (He is not Relative) who stays in USA, and is Doctor there, will this transsaction attract Income Tax? If Yes, at What rate?

[2] If I receive the above gift in USD then will it attract Income Tax?

[3] Is Gift deed Complusory for Such Transactions? If Yes, Where can I get Draft of the same?

[4] Can I receive Gift in CASH from my Mother 4 -5 times in one F-Y? Do I need to make Gift Deed?

[5] Which is the Right way to Receive GIFTS in CASH / Kind - so that It will not Attract any TAX Liability

[5] If a Spiritual Leader / Religious Preacher Receives CASH Donation of Rs.5 Lac from Donation Box - Since he is not charging any Entrance / Professional Fees for his Spiritual Knowledge which he Imparts - Will it be Treated as Income? Will it attract TAX? He is also a Trustee in a Charitable Trust Registered under 80G - which is Founded by HIM.

[6] If the Spiritual Preacher gets Donation of Rs.25 to 50 Lac p.a. then is he liable to pay TAX on that Donation Received? Can we call this a Gift in Legal Term? Is the details of the person who has given Donation Compulsory for him to keep?

parthasarathy

parthasarathy (Expert)
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13 April 2009 hi sir....
as per gift tax provisions... any amount of gift received from any person other than relatives (as per i.t. act) is taxable and is included in the total income of the receiver as "income from other sources".

1. your NRI friend is not your relative and the gift received is in form of cash, hence Rs.10 lakhs is included in your income from other sources and taxable as per slab rates.

2.cash gift includes amount in any denomination or currency. either in rupee or USD, its a cash gift hence taxable as above.

3.for any cash gift received from sources other than family members, cash gift is advisable. deed to be made on Rs.10/- non judicial stamp papers.
its not compulsory to have a deed made, but when I.T dept asks you to prove the gift source, the gift deed acts as a evidence of your source.

4.you can cash gifts amounting to any sum from any of your relative members. yes you can received gifts from your mother as many times as you wish in same f.y.... deed is not complusory, a simple gift confirmation letter in plain paper is sufficient evidence.

5.all kinds of cash gifts are countable, to study whether you received it from relative or non relative. any gift received in kind from any persois not taxable in the hands of the receiver. in cases of gifts received in kind....the dept usually asks for gift deed to prove the genuinity of the gift.

6.in case of cash gift of rs.5 lacs received by the trustee of a charitable trust. if he says the donation is for the trust and if the trust is registered under i.t. act for exemption u/s 11 on its receipts. in such cases as the trust is emepted...hence any donation received in cash or kind is exempt from tax.

7.spiritual leader is an individual, hence he cannot be exempted from tax under i.t under any section. hence any amount of donation received by him will be treated as anonymous gifts received by him and will be included in his total income under head income from other sources and taxable as per slab rates. there is not short term or long term gifts.....it is taxable in the year of receipt. e.g if he receives the gift/donation on 15.04.2008, he will be assessbale for such gift/donation in a.y 2009-10

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