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gift from blood relation is taxable or not

SUNNY (STUDENT CS) (377 Points)

06 April 2010

if any body want gift from his/her blood relation rs up to 1000000/-

in financial year 2010-11

it is taxable or not?

suppose a son wants gift from his mother

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7 Replies

sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
Replied 06 April 2010

AS PER LAW

Provided that this clause shall not apply to any sum of money received

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(d) in contemplation of death of the payer; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Explanation.For the purposes of this clause, relative means

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);]

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Amir (Learner) (4016 Points)
Replied 07 April 2010

Dear Sunny,

The term used in the provision is "Relative" & Relative is defined as awhat friend Sudhir has listed above.

Yes, gift to a Son by his Mother will be exempt.

SUNNY (STUDENT CS) (377 Points)
Replied 07 April 2010

OTHR THAN RELATIVE OR BLOOD RELATION IT IS TAXABLE ?

sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
Replied 30 April 2010

dear sunny now other than blood relation or relative it's situational question

when the situation is from listed below then not taxable

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(d) in contemplation of death of the payer; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

otherwise taxable

in as following definition given below

where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006

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Subhasis Das (propiter) (27 Points)
Replied 08 November 2012

Dear all,

My wife's own uncle want to give her a handsum amount (more than 10 lakhs) ..I have some query Please help:

1. What is the right porcedure of such gift?

2. Is that amount will be taxable?

3. Is there any limit to the amount any body can give to his relative?

As she is a house wife(have pan card) IT department may ask her the source. how she will clarify ?

Regards

Subhasis

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Ritesh Singh (Student CA IPC / IPCC / Article) (37 Points)
Replied 18 June 2018

As per Section 10 clause 20 of Income Tax Act 1961, Gift received from relatives will be tax free. (Meaning of Relative can find from above answer given by Mr. Sudhir Rawal).

Your Wife can receive the amount and it will not taxable under Income Tax Act 1961. But as per the Act File Income Tax Return of Gift Receiver and mention that amount which has been received under head "Tax Free Income".

Ayush (Executive ) (6760 Points)
Replied 04 April 2024

Note :

1. Cash or gifts are exempt from tax up to Rs. 50,000 in a financial year.
2. Property received without making any payment may be taxable if the difference between the actual value and stamp duty value exceeds Rs. 50,000.
3. Gifts received from specified relatives (spouse, parents, siblings, etc.) are exempt but income generated from such gifts may be taxable under clubbing provisions.
4. Gifts in contemplation of marriage or contemplation of death or under a will or inheritance.