11 August 2009
Whether amount is taxable u/s 56 ( 2 ) ( viii )of Income Tax Act if Son/Daughter receives any amount of cash which is exceeding Rs 50,000 /- from his Father /Mother ? If yes then what is the rate of Income Tax ?
What will be the legitimate way to reduce tax liability in such a case?
I would be greatful to you if you give answer for the same..
Sec.56 2(vii) where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009,—
(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;
Provided further that this clause shall not apply to any sum of money or any property received—
(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
Sec.56(2)(viii)
The following clause (viii) shall be inserted after the newly inserted clause (vii) of sub-section (2) of section 56 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :
(viii) income by way of interest received on compensation or on enhanced compensation referred to in clause (b) of section 145A.
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