Hello! I have 2 queries regarding gift (money) that I am seeking help in order to file my latest ITR:
- I have received gift from 2 of my friends (via UPI) that comes down to a total of 45,000 (under 50,000). I have researched that under section 56, gift received from friend under 50000 is non taxable so I wanted to understand how to declare that income in my income tax return.
- I have gifted my mother 1.5 lacs (via cheque) directly into her PPF account from my savings account in August 2022 so how can I show that I have gifted this amount to my mom under tax saving instrument? I am aware that money received and sent to parents is tax free but how to declare these things in the ITR?
I always fill ITR 4 under presumptive scheme (Section 44ADA). I cannot put 45000 under income from other sources because then it considers it income and makes it taxable. There is also a section for disclosure and exempt income but any amount entered there doesn't reduce the net income in my ITR. How to go about this, please help me! Thank you!
CAclubindia
