Dhanesh (Service) (75 Points)
08 November 2011Hi,
I have some query on Gift Tax. Suppose My monthly income is 100K & I am giving 50K to my parrents as a gift as they are wholly depends on me. Could you please clarify below points
Thanks,
Dhanesh
Anupam Bajaj
(Student)
(111 Points)
Replied 08 November 2011
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 08 November 2011
Surendra Gupta
(Partner)
(97 Points)
Replied 08 November 2011
I agree with Mr. Ankur. Please execute a simple gift deed for producing before the Assessing Officer if and when required by him
C A kailash vyas
(propritor)
(48 Points)
Replied 08 November 2011
AS PER IT SECTION 56(2) GIFT OTHER THAN RELATIVE IS TAXABLE IN THE HAND OF RECEIPIENT MORE THAN 50000/-AGGRIGATING IN A FINANCIAL -YEAR .
HENCE IT WILL BE TAXABLE IN YOUR HAND AS SECTION 9 BUT NOT TAXABLE FOR YOUR PARENTS WHETHER MORE THAN 50000 AND ABOVE.
Bhanu Prakash Rao
(Think Beyond Stay Ahead...!)
(1064 Points)
Replied 08 November 2011
| Originally posted by : C A kailash vyas | ||
 |
AS PER IT SECTION 56(2) GIFT OTHER THAN RELATIVE IS TAXABLE IN THE HAND OF RECEIPIENT MORE THAN 50000/-AGGRIGATING IN A FINANCIAL -YEAR . HENCE IT WILL BE TAXABLE IN YOUR HAND AS SECTION 9 BUT NOT TAXABLE FOR YOUR PARENTS WHETHER MORE THAN 50000 AND ABOVE. |
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agree with C A kailash vyas
Dhanesh
(Service)
(75 Points)
Replied 08 November 2011
First of all thanks a lot for your input I really appricate your comments. Could you please help me out for following points
Is there any limit for gift to relative. As of now I am giving 50000 PM from my salary i.e. 600K per year. suppose tomorro If I increase the gift amount from 50K to 100K or more. What is the treatment.
Thanks a lot once again
Balaji
(Knowledge Seeker)
(317 Points)
Replied 08 November 2011
Dear Dhanesh,
There is no limit to the amount you can gift your parents but to avoid any problems,ensure that they are through A/c payee cheques so that in case of any queries you can easily substantiate the transactions through your respective pass-books.
A simple letter on a plain sheet would suffice as evidence but include the words "given out of natural love and affection" in the text of the letter.
Rahul Gupta
(Chartered Accountant)
(644 Points)
Replied 08 November 2011
| Originally posted by : aNkuR jAin.................... | ||
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Your full salary will be taxable in your hands.... ie you cannot claim exemption from tax on the ground that you have gifted the said income As far as you parents is concerned gift recd from relatives is NOT TAXABLE so exempt in their hands |
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CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 08 November 2011
Dhanesh Bhai,
You have substantiated the name "Dhanesh".
Please suitably plan the investment and income of your parents also.
By gifting the money, you are indirectly reducing your tax burden, as money kept in FDRS would also have been invited extra incidence upon you.
One more thing, in future, when ever you desire to make a Grand -Investment, your parents can also make Gifts to you.
Income Tax Act has not kept limitations of any kind for the Relatives.
C A kailash vyas
(propritor)
(48 Points)
Replied 09 November 2011
Manoj R. Agrawal
(Service)
(86 Points)
Replied 09 November 2011
Full salary taxable in your hands
Gift to relatives does not attract tax liability.
CAclubindia
