Gift tax applicability
This query is : Open
05 January 2009
My father-in-law desires to gift a large sum to my minor daughter. The amount has already been taxed in his hands as income.
I would like to know whether this amount is likely to be taxable in my hand.
Alternately, can he gift this amount to my HUF / my wife.
I would like to know whether this amount is likely to be taxable in my hand.
Alternately, can he gift this amount to my HUF / my wife.
05 January 2009
Yes, gift to minor is taxable as Income from O/S in the hands of parent.
It can be gifted to ur wife or HUF
It can be gifted to ur wife or HUF
05 January 2009
Please visit http://www.rediff.com/cms/print.jsp?docpath=//money/2007/sep/27tax.htm
to study Sri R N Lakhotia's Article.
As I understand there is no tax on amount gifted by one to grand daughter irrespective of whether grand daughter is minor or adult
That income earned by minor by investing money (received as gift) suffers tax in the hands of her father is a different matter
We have to distinguish between
(1) Tax on amount received as gift
(2) Tax on income earned by investing amount received as gift
to study Sri R N Lakhotia's Article.
As I understand there is no tax on amount gifted by one to grand daughter irrespective of whether grand daughter is minor or adult
That income earned by minor by investing money (received as gift) suffers tax in the hands of her father is a different matter
We have to distinguish between
(1) Tax on amount received as gift
(2) Tax on income earned by investing amount received as gift
07 January 2009
I second Mr. K V Subba Rao's Statement
07 January 2009
thanks for the reply. with ref. hon. shri ahuja's comment, does grand father
( maternal ) not fall under the definition of relative under IT act?
( maternal ) not fall under the definition of relative under IT act?
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