Prabeer (B. COM (H) CA & CS Final) (5484 Points)
11 December 2008Mr. Amit has received Rs. 70 lakhs after deduction of Rs. 30 lakhs as TDS on Income, as he has won Rs.1 crore from a game show.
Out of Rs. 70 Lakhs Mr. Amit gifted 20 Lakhs to his maternal uncle Mr. Sumit (mama) without any consideration.
Is there any further tax liability going to occur in the hands of Mr. Sumit for Rs. 20 Lakhs ????
Please explain your answers.
CA. Rajeev Aggarwal
(Chartered Accountant)
(3424 Points)
Replied 11 December 2008
No, Boss Rs.20 Lakh wil be income in the hand Uncle if other conditions of taxability of gift satisfied.
Income tax is concerned only with the reciept of income and not its use.
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 11 December 2008
Sir, can u pls explain the same with sections which are applicable in this matter.
Thanks.
Hitesh Kothari
(Article)
(144 Points)
Replied 11 December 2008
Dear Prabeer,
The Sec 56(2)(v) deals with amt recd from relatives without any consideration. Accordingly gift recd from Son of Sisiter by your Uncle will be taxable in his hand.
One thing you can do is that gift that money to your mother tell her to gift that to her brother then it will not be taxable.
Thanks & Regards
Hitesh
CA. Umang Sangal
(C.A )
(83 Points)
Replied 11 December 2008
| Originally posted by :PRABEER SARKAR | ||
| " |
Mr. Amit has received Rs. 70 lakhs after deduction of Rs. 30 lakhs as TDS on Income, as he has won Rs.1 crore from a game show.
yes hitesh is right, sec 56 (2) deals income from other source. As u have not any blood relation with your uncle as per Income Tax . Mr. Amit, who has received Rs. 70 lak h after duduction of TDS should presented it gift to his uncle in indirect way and that is he should gift it to his mother and say to her to gift to her brother. |
" |
CA Jimmit D Mehta
(Employed)
(494 Points)
Replied 11 December 2008
nice question if u have any more questions than post it
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 12 December 2008
As per section 56 (2), the term 'relative', interalia, includes Brother or Sister of either of the parents of the individual. Accordingly, the gift must not be taxed in the hands of recipient also..
Correct me if i am wrong
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