Money as gift from cousin
maddy
(Querist) 07 October 2014
This query is : Resolved
Hi I am married women, my query is my cousin brother(My father's younger brother son) wants to gift me money say Rupees Twenty lakhs.
1)My query is can I recieve this gift in money form him?
2)Who would be liable for taxation in this matter, me or my cousin?
3)what would be the rate of taxation?
4)Also what documnts are required in case of taking a gift form a relative?
5) is there any other way to same the tax.
ajay sethi
(Expert) 07 October 2014
you can receive gift from your cousin but you have to declare it in your income tax returns . income you earn on said Rs 20 lakhs would be taxable in your hands .
Anirudh
(Expert) 07 October 2014
NOBODY CAN STOP ANYBODY FROM RECEIVING A GIFT.
But, as per Sec. 56(2)(vi) of the Income Tax Act, 1961, any sum of money above Rs. 50000/- received by an individual would be treated as income from other sources and taxed accordingly. The person receiving the money is liable to tax and not the giver.
There is no way to save the tax. The tax can be saved provided (i) your cousin brother gives the gift first to his father; (ii) his father gives the gift to your father (iii) your father gives the same to you. In this circuitous way, if the gift is given, then tax can be avoided at all stages.
It is not known whether you are already an income tax payer. In that case, you know as to the rate of tax applicable, in case the gift amount is added to your existing income.
Anirudh
(Expert) 08 October 2014
Dear Mr. Rajendra K. Goyal,
This is disgusting. Either you have answer or better keep quiet. What is this non-sense that even after seeing answer by somebody you go on say "consult your tax adviser". Do you mean to say that the answers given above are wrong. If so come with your answer. What do you mean by tax adviser? In that case all the answers for legal query in this LCI should also be asked to "Consult your legal adviser". Why are you not doing so, but instead answer.
The matter is simple. Whoever knows the answer can answer. Please stop hereafter simply saying consult tax adviser. Tax Adviser is not somebody who has landed from heaven. He is also one in our midst.
Guest
(Expert) 08 October 2014
Dear Author, For A Perfect Answer To your Query it would be Sensible if you could Contact the CA Club of the same Forum Or your Chartered Accountant for a Better Solution.This is a Legal Thread and please do not be misguided.
Anirudh
(Expert) 08 October 2014
Dear Querist,
Will you take a traffic guidance from a Legal Forum?
Guest
(Expert) 08 October 2014
@ Dear Author There is a CA Club Forum of the same LCI where you would get Excellent Reply for your query than this thread.Instead of getting Replies from Jack of All Trades you could get the Reply from Masters thro my Traffic Guidance Please.
Anirudh
(Expert) 08 October 2014
Dear Querist,
I know you want an answer to your query. Does it matter to you from it comes - whether master of all or jack of all. I am sure, you do not expect anything other than an answer to your query.
Yes, unfortunately, this LCI is infested with many who think they are masters of at least what they handle. They opt to be frogs in the well. They fear to tread into other laws, where the jack is ready to tread. So far, no body worth the salt, has pointed out any mistake in the answers provided by me. IF I DO NOT KNOW THE LAW OR ANSWER, I HAVE HONESTLY KEPT QUIET, NEVER EVER ASKED ANYBODY TO GO HERE OR THERE. I take pride in what I do. I do not bask in the reflected glory nor do I piggy back on somebody else.
Guest
(Expert) 08 October 2014
Dear Author, Some one who had not up dated their Profile or Disclosed their Identity or even not disclosed precisely what they are or who they are for several years but advising others as"DISGUSTING".They are Nothing and Anonymous.Better to Ignore them. Consult the CA Club or your CA and Proceed All the Best.
V R SHROFF
(Expert) 08 October 2014
Dear Anirudh,
Pl send PM or call Experts if you disliked answer, It is not decent to say so on public platform.
Experts need not read all answers, he may just read query and answer accordingly, irrespective of other answers.
Lets keep our bright image.
We need to tolerate few, whether we like or dislike.
Even I will say, CA or Tax consultant is right choice, and Querist is not poor, can afford their fees. Such persons always have their Tax consultants!
Asking query here is surprise for me too. When someone receives 20L in one stroke from one person!!..
CA have many alternatives/ show loan/ pro notes/ blood related free gift/ non taxable/ that suit a particular Tax payers..
So advising to refer querist to Tax consultant is fair enough.
Anirudh
(Expert) 08 October 2014
Dear Mr. Shroff,
First let me tell you I respect your views.
But, I must also say that it is a misconception that a lawyer who is trained in tax (specially direct tax) cannot handle tax matters and that it is only a CA will be able to do.
Now coming to your alternatives - loan (it is to be repaid) / (pro notes - it is to be repaid), blood related free gift - that is exactly what the querist asked and it was answered that a cousin brother is not a relative as per i.t. act provisions (exact provision has also been quoted).
In spite of that, if somebody, has to say that consult a Tax Consultant it is an insult to the person who answered it. It is not the first time that I requested Mr. Rajinder Goel not to do so.
If we have to keep our bright image, we can do so without slighting the answer given by another person. Either one can supplement the answer already provided or give a different answer. I have no issues.
In this case, Mr. Sethi and I have given the answer more than 4 and 2 hours prior to the answer by Mr. Rajinder Goel. Therefore, the question of the expert not having read the earlier answer does not arise.
You might have watched that I have either provided answer or skipped a query. But why not others follow it. Even if somebody does not know the answer, and even after noting that some answer has already been provided, why should one say consult a "Tax consultant", consult a good lawyer etc?
I think you will agree that those things surely does not enhance the brightness of this LCI.
Once again thanks for your concern for the welfare of this LCI. I subscribe to your views but please appreciate that I have also my views and the way of dealing with things.
Guest
(Expert) 08 October 2014
Dear Author,The Experts who wishes to Post their Replies to the Authors Need not go thro the Replies posted by others and they could very well post their views/comments/opinions etc.There is absolutely nothing wrong in stating Consult your CA or CA Club.If some one feels they are very much correct or Super Intelligent they could have their own website.Commenting on others as'Disgusting'should not be tolertated.
P. Venu
(Expert) 08 October 2014
It is high time that we all agree to a code of self regulation in avoiding suggestions such as "consult your lawyer/tax adviser" etc.
Guest
(Expert) 08 October 2014
NOthing to Reply please
Anirudh
(Expert) 08 October 2014
Dear Mr. Venu,
Can you kindly clarify what you exactly mean by your post. You will appreciate that there is something missing in your post (than what you intended), that's why I am requesting you to clarify.
Anirudh
(Expert) 09 October 2014
Dear Mr. Venu,
Thanks for your modified suggestion.
maddy
(Querist) 10 October 2014
Thanks all for ur Expert advice, your suggestions are great help to me.
malipeddi jaggarao
(Expert) 10 October 2014
The author "maddy" must have become "mad" by this time!!!
T. Kalaiselvan, Advocate
(Expert) 13 October 2014
I find expert Mr. Anirudh's views and opinions to the author's query is perfect and I endorse his views.
In my opinion, an expert who follows the thread with his opinion immediately after another expert's opinion, at least as a courtesy sake should have gone through the same and refrained from opining that way which certainly would hurt the feelings of the previous expert, again I request all the experts to not take it personally, I am sorry that if this also has hurt somebody.
Guest
(Expert) 14 October 2014
Dear Author, When You approach Two or Three Advocates for a Legal Opinion they would have their own Views and they need not be Yes Man to Others. Advising the Author to Consult Their Local Advocate would be the Best Solution Irrespective of the Replies the Right Track of Guidance.If"Disgusting,Better Keep Quite" Etc are welcomed by any one I have no objection They could accept it with out Recommending the Same to Others.
V R SHROFF
(Expert) 14 October 2014
Usually Experts will not have time to go thru all replies,nor is he concerned with it
As his main aim is to reply the querist.
Many a time, a long query is not even read.
For Example, today's query " Worm on Good day biscuit"
Replies were too long to read, and my answer is up to the point, so I directly replied what I have to advise.
So other Experts need not feel anything. They will certainly reply, what they feel correct.
I have practical knowledge and reply the most affective remedy[ As per me: I may be wrong too]
Opinion have to differ: never mind it.
Just reply and that's all.
Never mind what other Expert reply!!
and do not comment on other expert's reply, even if you are certain it is wrong..
Why General public should get a chance o believe experts can be wrong!!
Even Judges deliver wrong Judgement. It's only appeal able : That's all.
That will safeguard the Motives of Experts!! Your Objective... I cannot go further to disclose our Motives!! But protect the interest of LCI, as well as LCI Experts.. OK
That's DIGNITY.
It's the message of your dedicated selected Captain of LCI Expert. Pl follow it as a Team members. One of the team member may make mistake, We all have to protect, ignore, instead of exposing it. All do it.and prosper. It had already helped a lot of Experts.. Pl be united, and have a team spirit..
There were many attacks from outsiders to Experts: We unitedly shredded them, and today the picture is brighter. Our unity is our strength. Any crack can be very dangerous for us all. OK.
Anirudh
(Expert) 14 October 2014
Your latest post in no way shorter either.
I am sorry, you are not directly addressing the issue raised.
Guest
(Expert) 14 October 2014
Well Advised By Senior Expert Mr. V.R.Shroff
