Tax free gift
Querist :
Anonymous
(Querist) 22 September 2011
This query is : Resolved
If i give a gift of 1 lakh RS. to my mother.Will it be tax free?
R.Ramachandran
(Expert) 22 September 2011
The gift received by your mother is tax free in her hands.
But, the amount which you give as gift, one hopes already forms part of your taxable income. In other words, the amount might have suffered tax in your hands already. Just because you give the amount as gift to your mother, it will not be exempted in your hands.
Querist :
Anonymous
(Querist) 22 September 2011
and it works both ways right? I mean if my mother give me gift it will also be tax free?
Sailesh Kumar Shah
(Expert) 22 September 2011
Gifts under section 56(2)(vii) of the Income Tax Act, 1961 Says as under:
I. If any sum of money received without consideration, the aggregate of which
exceeds 50,000, the whole of such sum will be chargeable.
II. If any immovable property received –
(a) without consideration, the stamp duty value of which exceeds 50,000,
the stamp duty value of such property will be chargeable.
(b) For a consideration, which is less than stamp duty value of property by an
amount exceeding 50,000, the stamp duty value of such property as
exceeds such consideration will be chargeable.
III. if any property other than immovable property received –
(a) without consideration, the aggregate fair market value (FMV) of which
exceeds 50,000, the whole of aggregate FMV of such property will be
chargeable.
(b) For a consideration, which is less than the aggregate FMV by an amount
exceeding 50,000, the aggregate FMV as exceeds such consideration
will be chargeable.
However any such gifts received from relatives shall not be treated as income.
For the purpose of this, ‘relative’ means : ‐
(a) spouse of the Individual;
(b) brother or sister of the individual;
(c) brother or sister of the spouse of the individual;
(d) brother or sister of the either of the parents of the individual;
(e) any lineal ascendant or descendant of the individual;
(f) any lineal ascendant or descendant of the spouse of the individual;
(g) spouse of the person referred to in clause (ii) to (vi).
Querist :
Anonymous
(Querist) 22 September 2011
If I recive a Gift of rs. 30,000 from my friend and another rs 25,000 from another different friend in the same financial year. then would i have to pay tax?
Sailesh Kumar Shah
(Expert) 22 September 2011
Yes, it is chargeable to tax. it is more than Rs.50,000/=
Querist :
Anonymous
(Querist) 22 September 2011
ok ... thank yopu very much
ajay sethi
(Expert) 22 September 2011
agree with experts mr ramchandran and mr shailesh shah
prabhakar singh
(Expert) 22 September 2011
all the experts have very rightly opined.i agree with all.
