GIFTS RECEI VED FROM NON RELATIVES OF RS.240000/ IN CASH AND NO OTHER INCOME OF ASSESSEE, SHOWN IN ITR.....WHAT IS IMPACT
MOHD SHAHID (PROPRIETOR) (264 Points)
30 January 2016GIFTS RECEI VED FROM NON RELATIVES OF RS.240000/ IN CASH AND NO OTHER INCOME OF ASSESSEE, SHOWN IN ITR.....WHAT IS IMPACT
Shivani Mittal
(Practice)
(425 Points)
Replied 30 January 2016
Amount received, without consideration, from any person, other that relatives, aggregating to more that Rs. 50,000/- for any previous year is taxable in totality in the hands of receipient as Income under the head Other Sources u/s 56(vii).
Regards
CA Shivani Mittal
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 30 January 2016
Since the value of gift received does not exceed exemption limit, there is no liability of income tax
MOHD SHAHID
(PROPRIETOR)
(264 Points)
Replied 31 January 2016
Thanks Ms Shivani, but tell me in case ITO wants evidence/name of donor person, what extent ITO do his job.
Shivani Mittal
(Practice)
(425 Points)
Replied 01 February 2016
Hi,
That is the reason for suggesting you to maintain a gift deed for that. Gift deed in itself is a legal proof of gift which has donor details like name, address, father's name. You can get it notarised if required.
Further AO can question the source of income for gift of donor. In that case, donor bears the responsibility for explaining and justifying it.
Rest, if gift money is treated as per income tax act as advised earlier, in that case assessee has no further liability.
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