cpc

gift tax


I have the following querries

1. Is money transferred to my account often by my son taxable in my hands?

2. Can it be treated as gift though there is no documentation to show that?

3. Is there a ceiling for gifts from son?

4. Is it treated the same way if the money is transferred by my daughter in law?

My wife and my wife are retired and some income from pension and Fds below tax limits. These remittance is done by my son and my daughtee-in-law to meet house hold expenses and pay ment of utility bills. 

 
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Advocate

you ay show the money received from you son and daughter in law as a loan and advance. Thus it won't be taxable.

 

Further, any amount can be received from the blood relation as a gift. Thus, it won't be taxable.

 

You may show that the son had given you a cash as a birthday Gift to you and your wife. anniversary gift to you and your wife.

 

Thus, it won't be taxable to you and your wife.

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

 
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Dear Rohit Dalmia,

Thanks for the prompt reply. However some of my doubts sre still lingering. These transactions are already done and is done online. These transactions are not in one lump sum payment but in various amounts (10K, 25K,, etc) through the financial year. Is a documentation necessary since these are  recorded bank transfers and not in  cash..

 
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Advocate

since it is done through the bank transfer, you need not worry about the same. This is not at all your income. you are not taking any salary from your son or daughter in law, thus it is to be treated as an advance or loan only. there is no compulsion to have an agreement or written arrangement for it. between you and your son/daughter in law.

 

Also, if your income is below the threshold limit then you need not worry about taxes on it. 

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

 
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Thanks again Mr.Rohit Dalmia, That was very informative. 

 
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