22 November 2014
experts, if my cousin wants to t/f a part of his income I.e. 200000inr to his parents , then what is the taxability in hands of both parties.will it be considered as gift...???
22 November 2014
1. Gifts received from relatives is NOT taxable in the hands of the recipient as per Section 56(2)(vii). Accordingly gift received from son will NOT be taxable in the hands of the parents.
2. Clubbing provisions do NOT apply when amount/income/asset is transferred to parents. So there will be no tax implications in the hands of the son.
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