Dear Sir,
My mother gives me Rs. 1,50,000/- cash, out of this amount I purchased gold ornaments for Rs. 1,40,000/- and the bill made in the name of mine. Now the question is, can I show the amount as gift from mother in ITR? Is it taxable income from my side? Please advice me. and which section it will be exemted.
@ VIKAS... I have know that gift only Rs 30000 / year is tax free... please put more light on it... I may be wrong...
nope....gift received from relative is fully exempt, ur case arises if it is other than relatives ofcourse this has been increased to 50000 in recent years i guess.
sec 56(2)vi: where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006 1a[but before the 1st day of October, 2009], the whole of the aggregate value of such sum:
Provided that this clause shall not apply to any sum of money received—
(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer; or
(e) from any local authority as defined in the Explanation to clause (20) of section 10; or
(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or
(g) from any trust or institution registered under section 12AA.
Explanation.—For the purposes of this clause, “relative” means—
(i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual;
(vii) spouse of the person referred to in clauses (ii) to (vi);]
CAclubindia
