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Cash payment

NICSON JOHN (514 Points)

01 October 2020

i have paid 100000 in cash to my brother as gift...is there any violation?

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8 Replies

Santosh Hegde (133 Points)
Replied 01 October 2020

Hi,,
Any gift received from specified relative would be exempt from tax irrespective of amount.I assume u have given gift cash to your own brother, if that is the case then gift amount will not be taxed in the hands of your brother.Since brother is covered under specified relative.

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ayusmita (Tax consultant) (5885 Points)
Replied 01 October 2020

No violation of anything

NICSON JOHN (514 Points)
Replied 01 October 2020

Is there any issue for me since i paid more than 10000 in cash?

Santosh Hegde (133 Points)
Replied 01 October 2020

No issues at all.

ayusmita (Tax consultant) (5885 Points)
Replied 01 October 2020

You gift him your own brother
nothing issue but make sure of your cash in hand calculation n also the exempted money showing

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NICSON JOHN (514 Points)
Replied 01 October 2020

Then when this 10000 limit comes in for cash transactions??

Santosh Hegde (133 Points)
Replied 01 October 2020

Those are for business entities which makes cash payments above 10 k for any business expenses.Those expenses would be disallowed in ITR.

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ayusmita (Tax consultant) (5885 Points)
Replied 01 October 2020

If you are carrying on business or profession, the tax laws have prescribed a daily limit of Rs 10,000 beyond which payments in cash cannot be made for any expenditure to a single person.
not for your gift to brother