archana pitti (accountant and auditor) (111 Points)
02 August 2015
Z
( )
(2965 Points)
Replied 02 August 2015
Gift to relatives is exempt u/s 56(2)
Do make a gift deed as an evidence , mentioning therein that its out of natural love, no consideration received .
"relative" means,—
(i) in case of an individual—
(A) spouse of the individual;
(B) brother or sister of the individual;
(C) brother or sister of the spouse of the individual;
(D) brother or sister of either of the parents of the individual;
(E) any lineal ascendant or descendant of the individual;
(F) any lineal ascendant or descendant of the spouse of the individual;
(G) spouse of the person referred to in items (B) to (F); and
(ii) in case of a Hindu undivided family, any member thereof;
archana pitti
(accountant and auditor)
(111 Points)
Replied 03 August 2015
See the case is as follows:
My sibling carries on a proprietary concern under the name M/s XYZ Enterprises.
Now i gift this concern Rs.5000/- pm as a cash gift. Is this possible? Will it attract tax penality? or will this cash gift be exempted on the grounds that the Proprietor and it proprietary concern are one and the same.
Z
( )
(2965 Points)
Replied 03 August 2015
CAclubindia
