My Client being An Individual wants to gift of Rs 500000/ by way of cash to his Daughter who recently married before 6 Months.
whether this gift is exempted as specified u/s 56 of i.T. Act under the meaning of terms relatives.
Regards.
11 Replies
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 30 March 2010
Said gift will be exempted.
regards,
ratan
Kaushik Vankadkar
(Service)
(350 Points)
Replied 30 March 2010
Yes, relative includes Lineal Descendant. But beware you are making gifts in cash. That would amount to srcutiny as to the source of Rs. 5lacs. Read the provisions sections 68 to 69C of unexplained expenditure and cash credits.
Ayushraj
(Professional)
(125 Points)
Replied 30 March 2010
Yes the gift will be exempted.
Better advise your client to deposit the amount in his Bank account and then gift by way of a/c payee cheque instead of Cash. Also he can deposit and divide the amt in his wife's a/c, Major Son's a/c and then they can gift the same to your clients daughter.
bharat
(ARTICLE)
(86 Points)
Replied 30 March 2010
Agree with Ayushraj..................................
anshul bafna
(student)
(522 Points)
Replied 31 March 2010
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CA VISHAL RANA,CS,B.Com,AMFI
(Chartered Accountant in Whole Time Practice)
(4354 Points)
Replied 31 March 2010
Father is covered by sec 2(41) in the defination of relative. so gift from relative on any occassion is exempt in the hands of the reciever.
SHIKHA AGRAWAL
(Chartered Accountant)
(96 Points)
Replied 31 March 2010
Yes, it will be exempted under section 56, but gift in cash will attract the attentions of IT officers..
Whizkid
(student)
(640 Points)
Replied 31 March 2010
| Originally posted by : Ayushraj | ||
 |
Yes the gift will be exempted. Better advise your client to deposit the amount in his Bank account and then gift by way of a/c payee cheque instead of Cash. Also he can deposit and divide the amt in his wife's a/c, Major Son's a/c and then they can gift the same to your clients daughter. |
 |
Agree with thizz
Nomula Sreenivasarao
(DGM -Accounts)
(163 Points)
Replied 31 March 2010
yes
exempted,
But you should better to pay through a/c payee cheque
somesh kumar agarwal
(CONSULTANT)
(39 Points)
Replied 31 March 2010
Yes gifts recd. by an individual from the specified relatives are exempted from I tax.
Although as a proper practise It should be through chq. and a formal gift deed should also be prepared.
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