31 July 2012
Dear experts, i have two minor sons IN 20010-2011 first son recived gift on birth day Rs.38940 Second son received gift on birth day rs 43855
is gift tax applicable?
both sons' accounts are maintained separately. PLEASE GUIDE URGENTLY
31 July 2012
As per Section 56, in case Value of Gifts received is in excess of Rs. 50000/- then whole of the amount of Gift is Taxable. In this case both minor sons received gifts less than the limit individually and hence gifts are exempt in their hands. Consequently as per Section 64 (1A) there is no amount to be clubbed in the hands of the parent.
CAclubindia
