Sohil (Learner) (631 Points)
05 November 2011Sister planning to give gift to my mother of 1 lakh rupee in this financial year which she can invest in stocks.
My sister also pays rent to my mother on whose name our house so she can save taxes from hra allowance.
Now i want to know whther giving gift might cause trouble and be added as rent.
or she should avoid the same?
Or whether no such trouble giving gift?
Hardik R Shah
(CA)
(121 Points)
Replied 05 November 2011
received gift from relative is exempt from tax and receipt of house rent is taxable under the head of house property.there is no trouble being gift received but it maintain gift deed or on stemp paper for receving gift amount so there is no problem in future
Member
(Management)
(325 Points)
Replied 05 November 2011
Gift from linear ascendant or descendant and some other relatives are exempt. Tax is payable only on the rent component.
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