Income tax act for gifting

@Querist,

No tax on gift.

Note-This reply should be taken as per the declaration given in my profile page.

Thanks,

Regards,

See Section 56(2)(vii) of the Income Tax Act1961.

Such Gifts up to Rs 50,000 are exempt.Gifts above that limit are taxable  unless received: 

           (a) from any relative; or

           (b) on the occasion of the marriage of the individual; or

           (c) under a will or by way of inheritance; or

           (d) in contemplation of death of the payer or donor, as the case may be; or

           (e) from any local authority as defined in the Explanation to clause (20) of section 10; or

           (f) from any fund or foundation or university or othereducational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

           (g) from any trust or institution registered under section12AA.

- "relative" means,—

                (i)  in case of an individual—

                (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 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 items (B) to (F); and

           (ii)  in case of a Hindu undivided family, any member thereof;

To summarise the provision, no gift tax in your hand.

But in the hands of your cousin, such gift amount (if it exceeds Rs 50 Thousand) will be treated as income and added to his normal income. taxability depends upon hi total income.