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occation of marriage

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)

24 November 2009

gifts received on the occation of marriage are exempted u/s 56 of the income tax act.

what is mean by the occation of marriage here?

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15 Replies

MOHIT MAHAJAN (LCS, ACA) (2050 Points)
Replied 24 November 2009

As far as i know it simply means at the time of marriage of Individual i.e. any gift received by A on his marriage will be exempted in his hand.

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harry (Awaiting ca final results) (461 Points)
Replied 24 November 2009

It is not restricted to gifts received at the time of marriage. It has a much wider meaning.

CA Rajiv Poddar (k) (65 Points)
Replied 24 November 2009

the act says gift received on the occassion of marriage. therefore, it has to be given a strict interpretation and hence, marriage has to be understood as marriage only.

Aadhyayan (CA Business) (95 Points)
Replied 24 November 2009

MARRIAGE MEANS THE MARRIAGE CEREMONY OF THAT ASSESSEE HIMSELF OR HERSELF...
ONE CAN GIVE THE FOLLOWING EXCLUSION LIST FROM THE EXEMPTION:
CELEBRATING MARRIAGE ANNIVERSARY
MARRIAGE OF RELATIVES LIKE CHILDREN OR BROTHER OR SISTER
ENGAGEMENT FUNCTION..

NOW, HERE IT IS DIFFICULT TO MENTION WHAT SHOULD BE THE TIME SPAN OF MARRIAGE CEREMONY. IT WILL DEPEND UPON CASE TO CASE

aadhyayan @ gmail.com

renuka kadge (CA Final Student) (148 Points)
Replied 24 November 2009

even i too agree with mr.rajiv & mr.mohit.marriage means marriage of an individual,gift recd at the time of marriage will be exemptd

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renuka kadge (CA Final Student) (148 Points)
Replied 24 November 2009

even i too agree with mr.rajiv & mr.mohit.marriage means marriage of an individual,gift recd at the time of marriage will be exemptd

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 24 November 2009

thanks to all

but i want to know that from which event to which event will mean the occasion of marriage.

(Guest)

occasion means .. it have no boundaries... it is a reason for which we r giving the gift

in other words..at any time... if we wont like to gve this gift unless there is a marriage occasion

soo it is not the time to consider but the reason to b considered....

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 24 November 2009

thanx to all

now my doubt is cleared.

REASON FOR GIFT IS TO BE CONSIDERED RATHER THAN TIMING OF GIFT AND MARRIAGE.

Divya (CA Final student) (272 Points)
Replied 24 November 2009

come on ppl why so much huss-fuss bout this.. I think the provision is pretty clear. any gift received for the individual's wedding is non-taxable.

now there is an evident confusion on one thing- gifts received for marriage anniversaries.. This in most cases is considered as non-taxable.. But there is a lot of chances of tax evasion here!

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Narayanan.R (Chartered Accountant) (191 Points)
Replied 24 November 2009

Originally posted by :Divya
"	come on ppl why so much huss-fuss bout this.. I think the provision is pretty clear. any gift received for the individual's wedding is non-taxable. now there is an evident confusion on one thing- gifts received for marriage anniversaries.. This in most cases is considered as non-taxable.. But there is a lot of chances of tax evasion here!	"

Divya, Gift received on occasion of marriage anniversery is taxable. Only gifts received on occasion of Marriage is not taxable. On occasion even includes this case: if you receive gift 10days after marriage, then also it is not taxable. Any gifts received with respect to marraige is not taxable. If you include practical cases you told, its a tax evasion

Hemchand Kohli (Accountant) (889 Points)
Replied 24 November 2009

U/s 56 Is it not taxable in the hands of Donee.

Divya (CA Final student) (272 Points)
Replied 24 November 2009

No the section remains silent on the gifts received on marriage anniversaries. This is what i meant! you can check it out if u want.

Sunil (Trader) (2611 Points)
Replied 25 November 2009

Marriage Anniversary is not Marriage. It would be in order to have a copy of the invitation card and if possible date the invitation card. If you sent invitation a few weeks before marriage (maybe you can also evidence courier bills) and you receive gifts in the interim with identification of donor, it can be said to be received for the marriage. However, you are not exempted from the following:-

1) Proving Identity of Donor.

2) Capacity of Donor to Gift.

3) Genuineness. The exemption is being granted to you on basis of occassion. However, you will really need to satisfy the AO of the genuineness to gift especially if amount is large.

Exemption or no exemption, even if you get a regular gift from a non relative say of less than 50,000, you have to convine the AO as to why the person would gift you that kind of money. If a person files a return for Rs.300,000 p.a. and he gifts 50,000 to someone really remote, ther can be a problem. Listing the relatives has been done keeping in mind that gift transactions of large amounts can take place between those listed relatives. Receiving large gifts is too remote from other people.

What you do on marriages is someone sits at a table / counter, one each from girls side and boys side. The persons are accounting the chandlas and they note the name and address of donor. These are small amounts of maybe 251, 501, even 1001 is reasonable. If you have over 50 attendees each giving 1001, it will still be exempted.