Gift tax

RAJESH CHOPRA (Querist) 27 September 2020 This query is : Resolved
My real sister wants to give me Rs 30 lacs as Gift. I would like to know if any tax will be applicable to either of us .

She will Gift me the amount via Cheque.

Please advise if any document needs to be executed etc.

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kavksatyanarayana (Expert) 27 September 2020
Yes. You have to pay tax. However, you shall consult local CA or a lawyer who is practising in taxation.

Advocate Bhartesh goyal (Expert) 27 September 2020
Donee will have to bear the gift tax.

Dr J C Vashista (Expert) 28 September 2020
What is the opinion and advise of your or your sister's chartered accountant ?

Shilesh Patel (Expert) 28 September 2020
post the query on CA Club India.

Shailesh Kumar Shah (Expert) 28 September 2020
No one have to pay tax. please execute a deed for future reference.

Rajendra K Goyal (Expert) 28 September 2020
As per section 56(2) the Income tax act, the sum of money received from any of your relatives are fully exempt from tax. Here the “relatives” term defines by the Income Tax act as follows :

• Spouse of the individual
• Brother or sister of the individual
• Brother or sister of the spouse of the individual
• Brother or sister of either of the parents of the individual
• Any lineal ascendant or descendant of the individual
• Any lineal ascendant or descendant of the spouse of the individual
• Spouse of the person referred to in clauses (ii) to (vi).
• In case of a Hindu undivided family, any member thereof;

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Guest (Expert) 28 September 2020
Mr.Shailesh K Shah would you Please Legally Justify your Statement.

Shailesh Kumar Shah (Expert) 28 September 2020
Please refer to Learned Expert Mr. Rajendra K Goyal. He have already answered your question.

Guest (Expert) 29 September 2020
Any money received as Gift would attract Tax when it i exceeds Rs.50000/- irrespective of from whom it had been received or from whom it had been received.

Shailesh Kumar Shah (Expert) 29 September 2020
Gift tax is also not applicable.

Rajendra K Goyal (Expert) 30 September 2020
Yes, gift tax would not be applicable if the relation is covered in the definition of relative.

Guest (Expert) 30 September 2020
Also note Gift Tax Act 1958 followed an Donor based Taxation where in the Gifts were Taxed in the hands of Donor at the flat rate of 30%. ( Query has to be read Properly also persons who say No Tax could confirm IT Assessments do not question all this ) )

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