Kollipara Sundaraiah (B.com) (2983 Points)
10 November 2023
Musrath Shaik
(175 Points)
Replied 11 November 2023
The Income Tax Act in India does not tax gifts received from relatives. According to Section 56(2)(vii) of the Income Tax Act, gifts received from specified relatives are exempt from income tax. Specified relatives include brothers.
Here's a brief overview:
Gift Received: If you, as the recipient, have received a cash gift of Rs 15 lakhs from your brother, it is generally exempt from income tax as it falls under the category of gifts received from specified relatives.
Gift Given: If you, as the recipient, later gift Rs 5 lakhs to your brother, it's important to note that gifts given are generally not taxable. However, if the aggregate value of gifts given by an individual exceeds a certain limit in a financial year, it may be considered taxable as 'income from other sources.' The limit is specified in Section 56(2)(x) of the Income Tax Act.
For further more detailed information on this topic visit: Gift of Property & Tax Obligation: A Comprehensive Guide Income Tax
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