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gift

Krk (26 Points)

10 May 2007

Can i take gift of Rs 1,00,000/-(by cheque) from my mother, so that i can pay my downpayment for the purchase of flat. The Agreement shows joined names (Me & my father). My father will not pay any thing for the flat. I will pay the balance amount.What will be the tax consequences

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4 Replies

Yashwanth Jain (70 Points)
Replied 10 May 2007

GIFT RECEIVED FROM A RELATIVE IS EXEMPTED FROM PAYMENT OF TAX, IF HE/SHE IS NOT A RELATIVE THEN IT IS EXEMPTED TO THE EXTENT OF RS. 25000 AND IF THE AMOUNT OF GIFT RECEIVED FROM NON RELATIVE EXCEEDS 25000 THE WHOLE AMOUNT WILL BE SUBJECTED TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES.

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Yashwanth Jain (70 Points)
Replied 10 May 2007

AS PER THE NEW AMENDMENT GIFT RECEIVED IS EXEMPTED UPTO RS50000/-

Selvakumar Selvaraj (Chartered Accountant) (1386 Points)
Replied 10 May 2007

Hi.

Prior to amendment gift received from persons otherthan relatives is taxable if the gift amount is Rs.25000/- per gift in cash. After amendment the gift from the same person is taxable if it crosses Rs.50000/- in cash in aggregate during the year and not per gift transaction. (Other than the exemptions given)

"Smile a lot its cost nothing"

Selvakumar.S