Taxability of Gift

This query is : Resolved

Abhishek Chhapolika (Querist)
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02 December 2010
Hi Friends,

I want to know if an Indian Assessee received $ 20,000 gift from their fiancee that is residing in foreign country before marriage then whether it is taxable in India or exempted in India? Explain clearly with reference to case law or with the help of section.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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02 December 2010 If you can show it is nearly at the time of mariage then the same can be claimed as exempt u/s 56(2). If not then it will be taxable as husband - wife relationship does not subsist at the time of giving loan. Also if given after mariage it will be subject to provisions of clubbing.