gift tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2010 dear sir,
my mother in law gifted my wife Rs. 1000000/- by cheque. how to show the same in itr4 and under which section should i claim rebate.
also i do tuitions and have income of 160000/- per annum, am i liable to pay service tax. and on which itr form should i file my return. i presently file in itr4

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 August 2010 Mother in law is the lineal ascendant of your spouse. So the gift is exempted from income tax vide clause (vi) of explanation to section 56(2) of the Income tax Act,1961.
The amount received as gift has to be shown in clause 6 of schedule EI of ITR 4.

Since the value of services is less than the threshold limit of Rs. 9 lakhs service tax registration is not mandatory. However for want of full details applicability of service tax cannot be fully examined.