Need advice
This query is : Resolved
10 September 2011
if any son gives money to his parents...then will it be consider as gift or loan + what will its tax implications?
....if that money is invested by his parents in shares....then what will be the effect?
....if that money is invested by his parents in shares....then what will be the effect?
21 September 2011
You have to see the actual intention of the transaction.
The sum of money was given with an intention to recieve it back or was it given as a gift.
Anyways,there is no tax implication in both the cases.
Gift is exempt if received from a relative
The sum of money was given with an intention to recieve it back or was it given as a gift.
Anyways,there is no tax implication in both the cases.
Gift is exempt if received from a relative
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21 October 2011
thanks sid....will u lpz refer sections for the same
22 October 2011
Section 56(2)(vii) of the Income Tax Act provides that gifts received are taxable in the hands of the recipient.
However, Second proviso provides that gifts received from relatives is not taxable.
Relative means—
i)spouse of the individual;
ii)brother or sister of the individual;
iii)brother or sister of the spouse of the individual;
iv)brother or sister of either of the parents of the individual;
v)any lineal ascendant or descendant of the individual;
vi)any lineal ascendant or descendant of the spouse of the individual;
vii)spouse of the person referred to in clauses (ii) to (vi);]
However, Second proviso provides that gifts received from relatives is not taxable.
Relative means—
i)spouse of the individual;
ii)brother or sister of the individual;
iii)brother or sister of the spouse of the individual;
iv)brother or sister of either of the parents of the individual;
v)any lineal ascendant or descendant of the individual;
vi)any lineal ascendant or descendant of the spouse of the individual;
vii)spouse of the person referred to in clauses (ii) to (vi);]
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24 October 2011
THANKS A LOT FOR QUOTING THE SECTION
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