S.RAMAMURTHI (SERVICE) (76 Points)
21 April 2010CAN I MAKE AGIFT OF RS ONE LAKH EACH TO MY OWN BROTHER"S SON &HIS WIFE ON THE OCCASION OF THEIR MARRIAGE.
WILL IT MAKE ANY DIFFERENCE IF MAKE THE SAME TO MY BROTHER ON THE SAME DAY INSTEAD OF THEIR WARDS.
WHAT ABOUT TAXABILITY ON BOTH OCCASIONS.
PLEASE DO ADVICE.
Amir
(Learner)
(4016 Points)
Replied 21 April 2010
Dear Sir,
Firstly, I don't know but I felt after reading your query that there is cofusion regarding in whose hands the gifts are taxable.
Gifts given by you will be taxable in the hands of recipient.(if at all they are taxable) - So no tax liability in ur hands...
Now coming to ur specific cases -
1) Gifts of any amount received on the ocassion of marriage of the individual are exempt. -As per this clause the sum will be exempt in the hands of ur nephew & his wife.
2) Giftsof any amount made to specified relatives (Brother is one of them) are exempt irrespective of the ocassion - As per this clause the gift will not be taxable in the hands of ur Brother.
CA Mohit kumar jain
(Searching Source of Money)
(149 Points)
Replied 21 April 2010
agree withamir sir
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
CAclubindia
