Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Cash gift

(Querist) 07 March 2013 This query is : Resolved 
My father wants to gift Rs.20 L to my wife.i.e Can a person give tax free cash gift to his daughter in law?
Kindly advice.

Thanks.
prabhakar singh (Expert) 07 March 2013
Any receipt of sum of money or any property from any relative does not attract GIFT TAX
uu/s 56(2)(vii)and Husband’s Father (Sasur)
does fall with in the list of relative.

Hence answer is in AFFIRMATIVE.Your father can gift it tax free in hands of your wife.
prabhakar singh (Expert) 07 March 2013
CAUTION:
It may be noted that there is no blank exemption in respect of Gift within prescribed limit of Rs.50,000 as also gifts from relatives and gifts received in circumstances of exceptions. In appropriate cases the department will be within its powers to treat even such unexplained or unproved gifts as cash credits or income u/s 68 of the Income Tax Act.
Sankaranarayanan (Expert) 07 March 2013
no more words need to explain for your query. I agreed to mr prabhakar sing ji
Raj Kumar Makkad (Expert) 13 March 2013
It is to be seen whether the donor was having such huge amount legally at the time of gift and if yes then he/she is required to pay income tax thereon.
Ganesh babu (Expert) 15 May 2013
GIFT RECEIVED FROM RELATIVE IS EXEMPT FROM INCOMETAX AND IN UR CASE IT IS FALLING IN THE DEFINITION OF RELATIVE,

AND TAKE CARE ON POINT NOTED BY RAJKUMAR SIR,

AS YOU MAY DEPOSIT THIS AMOUNT TO BANK AND DEFINETELY IT WILL COME IN AIR

AND IT DEPT MAY SEEK FOR YOUR EXPLANATION ON IT
modi kamal (Querist) 15 May 2013
Sir Raj Kumar Makkad,

Please clarify as to who is required to pay income tax.My father will be giving gift to my wife through cheque and he will be giving out of his own capital.He is regularly filing his returns for last 40 years.
Guest (Expert) 15 May 2013
Had you read the advice of S/Shri Raj Kumar Makkad and Ganesh Babu, you would have got the answer to your latest query.

You caould well have got the correct answer at the very first instance had you give full fact that the gift was in the shape of cheque. By using the term of mere case, anybody can doubt as if the gift was out of black money in the shape of hard cash.

However, you wife would not be liable to any tax. Only your father becomes liable if gifted amount has not been properly accounted for and shown in the returns of your father.
ajay sethi (Expert) 15 May 2013
agree with dhingraji


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :