12 March 2008
If an individual gives cash as gift to his parents, will that reduce his taxable income. If so how can he prove that he has given cash as gift to his parents to claim deduction from his taxable income, i.e what are all the documents he has to produce to prove the gifting of cash to his parents.
Thanks in advance for your clarification. If you have any supporting case law is highly helpfull
13 March 2008
GIFT GIVEN IN CASH TO PARENTS DOES NOT AT ALL REDUCE HIS TAXABLE INCOME THOUGH IT WILL REDUCE HIS CAPITAL.TO PROVE THAT HE HAD GIVEN THE GIFT IN CASH HE SHOULD HAVE ACCOUNTED CASH IN HIS HAND TO PROVE IN FRONT OF ASSESSING OFFICER
13 March 2008
Cash as gift does not in any way reduces tax. Further, for proof that gift has been given, you may also draft on Rs.10 stamp paper and get it notified that gift has been made.
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