Dea Sir,
Mr. X received cash gift Rs.25,00,000/- from his sister Y. Is it taxable under gift tax? Does Mr. X needs to make any gift deed for this transaction? How Mr. X shows the gift in return?
Thanks & Regards,
Asim Jana
4 Replies
Back in the Game
(a)
(1273 Points)
Replied 13 March 2013
The Gift is from relative therefore not taxable.
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 13 March 2013
THE AMOUNT RECEVIED AS GIFT FROM THE BROTHER IS NOT TAXABLE,
HOW EVER While receiving a gift, its always in the interest of the donee (i.e., the recipient) to get a gift deed signed by the donor. This can always help support the case that the item was indeed a gift and can be used as evidence in case of future litigation/investigation by the Income tax department.
MR.Y CANNT CLAIM DEDUCTION FOR THE AMOUNT GIVEN AS GIFT,
CORRECT ME IF I AM WRONG
C.Balaji
(Learner)
(1867 Points)
Replied 13 March 2013
As per the Income tax act, Gifts received from relatives are fully exempt from tax. Whether you receive the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts. “Relatives” as per the Income Tax act as follows :
- Spouse of the individual
- Brother or sister of the individual
- Brother or sister of the spouse of the individual
- Brother or sister of either of the parents of the individual
- Any lineal ascendant or descendant of the individual
- Any lineal ascendant or descendant of the spouse of the individual, Spouse of the person referred to in clauses (ii) to (vi).
No tax liability for Mr.X since it is exempt from tax.
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