Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Gift received from In laws in Money ..Whether taxable or not in Ay 2018-19

Ishatpreet Singh (Article assistant) (71 Points)

08 July 2018

One of my clients got married and received amount of Rs 3 lakh via cheque from his his in laws ..Will it be taxable or not in the hands of assessee ..Also there was an amount transfer from his wife's account after marriage..What is its taxability ?

Reply
Follow
Share

5 Replies

JAI BHOLA (504 Points)
Replied 08 July 2018

The gift received by individual on the occasion of marriage is not taxable even if received by non relative as per section 56(2)(vii) ..
therefore the 3 lakhs are not taxable ...
and kindly elaborate your query related to amount transfer from wife's account as to where and when ..

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA Sunil Kumar (Chartered Accountant) (4519 Points)
Replied 08 July 2018

if gift or money as gift received from “Relative” then it is not chargeable to tax. In Law is covered in defination of relatives. So money received from In law of Rs. 300000/- is not taxable.
Clubbing provision will applicable on money transfer by wife. Any income generated by investing this money will be clubbed in wife income.

1 Like

Ishatpreet Singh (Article assistant) (71 Points)
Replied 08 July 2018

Money transfer from wife'a/c to husband's a/c amounting 4lac after Marriage..After that FD was created out of it in Ay19-20 ..

Also money from in laws was transferred couple of months after marriage..

Saifullah Khalid (Autodidact/Curious ) (633 Points)
Replied 08 July 2018

Originally posted by : Ishatpreet Singh
	Money transfer from wife'a/c to husband's a/c amounting 4lac after Marriage..After that FD was created out of it in Ay19-20 ..Also money from in laws was transferred couple of months after marriage..

(1) Interest/income generated out of the money (4 lacs) gifted by wife will be clubbded with your wife`s income .
(2) As in laws gifted after marriage so no tax issue with that amount...no tax liability for the assesse .