Incometax
Querist :
Anonymous
(Querist) 05 November 2011
This query is : Resolved
every month, i get money from myson through
bank from u.s.a. is it necessary to show as income in my i.t.return
A V Vishal
(Expert) 05 November 2011
What is the nature of remittance, if it is gift then it is not taxable, however, you need to declare it in your IT returns if you are filing one.
prabhakar singh
(Expert) 05 November 2011
@ VISHAL!
AND IF IT IS MAINTENANCE ALLOWANCE THEN??
Sanjeev
(Expert) 05 November 2011
The money that you receive from your son in US would be tax paid in US as it would be taxed as his income in US and US has signed a double taxation avoidance agreement with India. So this money is not liable to be taxed in India.
mahendrakumar
(Expert) 06 November 2011
I do feel,the income is to be shown in your it return.
however,in view of the double taxation avoidance agreement with usa,the said income wont be taxable.
Guest
(Expert) 06 November 2011
The question by querist seems to be incomplete, as he has not mentioned the sum of amount received every month from his son and for what purpose, i.e., his own income or as maintenance allowance to his parents.
As such, txperts may please like to review the situation as to what type of income is shown in hand by the querist and how the IT department takes that? Even if that is treated as maintenance allowance that would also depend upon the total monthly amount he receives from his son.
According to Subhash Lakhotia, a prominent Tax & Investment Consultant of Delhi, provisions under Income Tax Laws are not clear about taxation of income in hand of the parents, as received as maintenance allowance from their child.
An extract from Article, "MAINTENANCE & WELFARE OF PARENTS AND INCOME TAX LAWS," as appearing in the HELPAGE INDIA–RESEARCH & DEVELOPMENT JOURNAL • VOL. 14 • NO. 3 • OCT 2008, is placed below for perusal of the querist and experts also.
"Provisions under Income Tax Laws Under the Income Tax Law there is no clear cut provision whether the amount received as maintenance allowance would be taxable or not. The author is of the view that if the amount is received by way of maintenance allowance then the said monthly allowance so received would be taxable in the hands of the parents. However, expenses incurred by the children on the maintenance of the parents or senior citizens would not be coming within the clutches of the Income Tax Law. The Government should come out with clear cut guidelines to exempt under the Income-tax Law the amount received by way of maintenance allowance received by parents from their children by amending section 10 of the Income-tax Act, 1961."
prabhakar singh
(Expert) 07 November 2011
@ DHINGRA JI !
THAT IS WHY I ASKED THE QUESTION ABOUT MAINTENANCE?
BUT DO NOT YOU CONSIDER IT WOULD BE TOO HARSH
TO FALL UPON PARENTS TO TAX MAINTENANCE ALLOWANCE
WHICH IS ALREADY TAXED IN THE SAME VERY YEAR IN THE
HAND OF THE CHILD WHO EARNED IT.
WOULD IT NOT AMOUNT TO DOUBLE TAXATION ????
WOULD IT NOT AMOUNT TO DISHONESTY OF POLICY IF WE
ARGUE MAINTENANCE AMOUNT TAXABLE IN HANDS OF PARENTS
FOR WHICH THE EARNER HAS ALREADY PAID THE TAX.?????
prabhakar singh
(Expert) 07 November 2011
@DHINGRA JI !
THOUGH AUTHOR IS A RESPECTABLE NAME IN MATTERS OF TAX.
BUT WITH DUE RESPECT TO HIM,I AM UNABLE TO SUBSCRIBE HIS VIEW THAT IT WOULD BE NON TAXABLE WHEN BEING EXPENDED BY CHILD OF PARENT.HERE I FIND NO PROVISION OF EXEMPTION ON THIS A/C IN IT ACT.
BUT IT SHOULD BE BECAUSE IT IS A BURDEN ON THE INCOME.WHEN HE EXPENDS ON RENT HE GETS EXEMPTION. SIMILARLY HE SHOULD GET ON THIS SCORE TOO.
FOR EVERY PARENT OR LIKE WISE FOR EVERY CHILD IT MAY NOT BE PRACTICABLY POSSIBLE TO LIVE TOGATHER AND IN THESE CASES TRANSFER OF MAINTENANCE ALLOWANCE WOULD GET ATTRACTED AS OF NECESSITY BUT THE SAME WOULD BE GREATER PROOF OF EXPENSE TOWARDS THIS ALLOWANCE.
SO BEING THE FACTUAL SITUATION MY HUMBLE VIEW AND SUBMISSION BEFORE THE AUTHOR AND OTHER PERSONALITIES IN TAX FIELD IS THIS THAT THEY SHOULD PLEAD EXEMPTION ON THIS A/C IN THE HANDS OF CHILD EITHER INCURRED BY HIM DIRECTLY OR BY REMITTING THE AMOUNT TO PARENTS PERIODICALLY.
ANY CONCEPTUALIZATION TO TAX THAT AMOUNT IN HANDS OF PARENT SHOULD BE COMPLETELY OUT OF COURT.
