Share |

"Family Tax Planning While Accepting Gift"


You now need to be a little careful when receiving a gift from people who are not your relatives. A gift received on or after 1 September 2004 from non-relatives would be treated as your income from other sources and taxed accordingly, unless the gifts received are upto `50,000. The gift from relatives can be received of any quantum.

These limitations with regard to gifts from persons other than your relatives apply only with respect to gifts received by cash, cheque or any other mode of payment such as gift cheques and travellers cheques as also gifts in kind. Thus, gifts by way of jewellery, property, etc., can be received even from non-relatives without being subject to income tax within the overall limit of `50,000.

It would be advisable for the person receiving gifts to obtain a certificate in duplicate or an affidavit from the donor. As far as possible, gifts should be made by account payee cheques. Of course, the gift must be genuine. It is better to mention the income tax file number or PAN of the donor. The donee of the gift should send a formal acceptance letter to the donor for having accepted the gift.

As per the Finance Bill, 2012 if certain gift is received for which the assessee has no proof, then income-tax @ 3O% would be payable on the same.
More Topics ...
Introduction to Family Tax Planning
Family Tax Planning - Matter Of Making Gifts And Settlements
Family Tax Planning For A Nuclear Family
Family Tax Planning By DINKs (Double Income No Kids)
Family Tax Planning While Accepting Gift
Have A Trust For Your Prospective Spouse for Family Tax Planning
It Is Possible To Have Discretionary Trust - Family Tax Planning
Avoid Oral Trust towards Family Tax Planning
Conclusion @ Family Tax Planning
How To Avoid Clubbing Of Income Of Husband And Wife -Tax Planning
How To Avoid Clubbing Of Income Of Minor Child In Parent’s Income
Minor Child should have Separate Income Tax File for Tax Planning
Use Of Marriage For Family Tax Planning
Major Children Are Your Great Tax Savers for Family Tax Planning
Your Parents And In-Laws Can Save More Taxes For You
You May Plan To Save Income Tax For Your Successors
Separate Income Tax File For A Daughter-In-Law
Get Updated ...
Tally.ERP 9 Book
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications