Richa (B.Com, CA Final Stdnt) (113 Points)
24 May 2011Hiiii to all
pls resolve my querry, here it is:-
If father gives money to his son for studying abroad as a gift, then by which mode father should give the money? and further is there any need of Gift Deed?
Note: Son was the employee in the father's organisation and got the remuneration for Rs. 30000.p.m. this amount father wants to give as a gift to his son.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 24 May 2011
If an amount is recievd without adequate considertaion then sec 56 (2)vi is attracted.
But since it is recievd from a father who falls under d defintition of 'Relative' then upto50,000 during d FY is not taxable. No need of any gift deed to be made since it is a movable property.
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 24 May 2011
thanks Sir..................bt have u considered, that it is the remuneration that father wants to give his son as gift.
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 24 May 2011
if it is a gift (from relative) then nothing is Taxable. but if any amount is received from employer then it is taxable as salary. it doesn't matter by what name it is known.
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 24 May 2011
Hi Amanpreet
the same thing m asking that son is the employee in his father's organisation and now he wants to go abroad for studies,and now father wants to give this remuneration as a gift to his son.
Actually it is a practical case i have to handle...son is the employee in his father's organisation till now, and next month wants to go to abraod, and father wants to give the remuneration as a gift, so that it could not be taxable..
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 24 May 2011
How can a remuneartion be called as gift wher remuneration is recvd only by an employee by virtue of Employer-Employee Relationship under a contract for service.
suman
(Auditor )
(388 Points)
Replied 24 May 2011
There is very simple solution to this query . First of all lets agree on the point that this thing cant be done by gift mode. Even if it's allowed father's taxabilty does not reduced . But if son Advances money to father as unsecured loan ( From earning of 30000 rs p.m which he is getting from father organaisation ) after that organaisation will pay intt on this amount which will be deducted from taxable income of firm. For The remaining part they can do this by there HUF file (if Exits.) I can provide u some more practicle solution but it will be provided on personal mail id only.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 24 May 2011
@ Suman - First of all a salary can never be given as gift.
secondly Sec 192 is attracted since Tax needs to be deducted (if conditions under 192 fulfilled).
Suppose if Tax needs to be deducted thn if gvn as gift in whole without deducting tds thn Father will be deemed to be assessee in defualt n will be liable to pay intrst u/s 201(1).Further if tds nt deducted(if req to) thn Penalty u/s 271C (1) will be applicable.
Suppose ther is no Huf created by dad thn watever u said is not applicable.
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 24 May 2011
Tushar Sir i m agree with u and thanks for ur feedback
bt pls try to understand my querry, i m saying if in the month of may, son resigned his job, then father can give the amount of remuneration as a gift.. isn't it?
work is worship
(Service)
(2728 Points)
Replied 24 May 2011
Richa
When son is in employment, then the salary paid is remuneration and cannot be termed as a gift.
However, when son has resigned from job, the amount given which should not be part of the settlement benefit, then it can be treated as a gift and section 56(2) will attract and upto 50,000 will be exempt from Tax in a Financial year.
kshitij kumar
(CA Final)
(41 Points)
Replied 25 May 2011
CAclubindia
