We all know, if value of gifts received is more than Rs.50,000 a year, then such amount is taxable in the hands of the receiver. The condition of Rs.50,000 is not applied if gifts are received from relatives. Income tax act also defines relatives, which include your spouse, parents, brother, sister, brother and sister of spouse, etc.
Which means you can receive gift from your relatives without any limit and it would not be taxable in your hands.
In so many cases income tax officers has taxed the gift received by you from your relatives. You must be shocked, but the reason is very simple. ‘’Gift should be genuine and donor of gift has creditworthiness’’.
These two reason make yours gift taxable if you are not able to prove that the gift are genuine and donor is enough creditworthiness. Which could result in tax on gifts, interest and penalties.
Don’t make poor tax planning which makes you financial hurdle.
Keep reading! And reach out to us if you have any queries and you are looking for an CA in Gurgaon, Faridabad, Delhi for further clarification.