Gift tax

swathysundaresh (Querist) 02 March 2015 This query is : Resolved
SIR I HAVE GIVEN THE AMOUNT OF RS.500000/ TO MY COUSIN AS A GIFT.SHALL I HAVE TO PAY THE TAX AMOUNT FOR IT SIR?
PLEASE ADVISE ME

Follow Query

Report Abuse

Advocate Kappil Cchandna (Expert) 03 March 2015
Dear,

It depends whether u fall in the definition of relative or not .... Please disclose the relationship in detail ....

Kapil Chandna Adv 9899011450

Anirudh (Expert) 03 March 2015
Your cousin is not one of the 'relatives' for the purpose of Section 56 of the Income Tax, and therefore the amount of gift given by you will be taken into account as 'income from other sources' in the hands of your cousin, and your cousin will be taxed accordingly.

There will be no tax in your hands, so far as the amount given by you already stands accounted for in your income tax return.