Cash received from grand father

Tax queries 582 views 3 replies

rishi

owner

35 Points Joined April 2013

In last financial year, i hava received 1,50,000 Cash from my Grand father Which i deposited in my bank account at one go.

Plus also i have recevied few cheque paymenst from his bank account to my own bank account.

Near about OCT 14 , 1 Cheque - 1 lakh, 1 cheque - 1 lakh ( Out of these two lakh i have given him back 90000 through online transaction from my account to his bank account).

Than

Near abou Feb 14

I received 2 cheques of 2 lakhs from his bank account.

All these payment i have received in finanacial year 14-15.

I haven't made any income from these amount received. However lost 2,90,000 in APRIL 2015 in Banknifty futures trading .

Do i have to pay tax on amount recieved from Grand father in above case scenerio.

If anybody can guide me that will be helpful

Thanks

Replies (3)

Sonakshi Mangla

Employee

310 Points Joined June 2014

you have received that amount in form of gift or loan?

if in form of gift: then no tax implications since gift received from grandparents are not taxable. (refer relevant clause of section 56)

if in form of loan: loan exceeding Rs. 20000 in cash is taxable.

rishi

owner

35 Points Joined April 2013

Originally posted by : Sonakshi Mangla

you have received that amount in form of gift or loan?

if in form of gift: then no tax implications since gift received from grandparents are not taxable. (refer relevant clause of section 56)

if in form of loan: loan exceeding Rs. 20000 in cash is taxable.

No this is not in form of loan signed , also there is no formal gift deed has signed.

However gave me money as normal banking transactions

what would be in this case?

Sonakshi Mangla

Employee

310 Points Joined June 2014

no gift deed is required to be executed in case the gift is in form of cash or cheq.. so u can treat that amounnt as gift & it will not attact any tax implications..