Kindly advise if any tax is payable on gift of money received from a parent by a son/daughter or vice versa.
If so, under what head is the tax payable?
thanks
15 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 13 May 2018
Gift received form parents to son/ doughter or visa versa Not taxable under section 56 sub sectoin 2 of the income tax act 1961 .please confirm with others also.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 13 May 2018
Any gift received from relative is exempted under IT Act....
rama krishnan
(12239 Points)
Replied 13 May 2018
gift amount is exempted under section 56(2)(x) but whereas any income earned out of the gifted amount, then the same will be clubbed in the hands of the parents with higher income
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 13 May 2018
Gift received from relatives are exempt from tax. Parents cover in the defination of relatives.
hardik
(student)
(73 Points)
Replied 13 May 2018
gift received is exempt you must refer definition of relative on Google
rama krishnan
(12239 Points)
Replied 13 May 2018
gift is exempt... what about income generated out of gift?
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 13 May 2018
Income generated out of income received from gift is taxable....
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 13 May 2018
Taxable in hands of a person who receive goods....
rama krishnan
(12239 Points)
Replied 13 May 2018
no mam, there's exceptions... please have a look in clubbing provisions mam
VIRAJ KHODKE
(44 Points)
Replied 13 May 2018
income generated out of gift is taxable in the hands of the person to whom that product or sum is gifted..
v.raj
(individual)
(104 Points)
Replied 21 June 2018
to clarify, the gift amount is intended to be given FROM the son TO the parent.
is that also tax free?
thanks
Deepak
(student)
(36 Points)
Replied 21 June 2018
Any gift received from Parent Son/Daughter or vice versa that is exempt under section 56(2)(x) under income tax act 1961
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