Naruto Uzumaki
KF Rookie
WHAT IF WE TAKE 10 LAKHS OF MONEY FROM MOTHER AND FATHER DURING A FINANCIAL YEAR? DO I HAVE TO WORRY ABOUT THE INCOME TAX NOTICE IN THIS SCENARIO?
INCOME TAX ON MONEY GIVEN BY PARENTS TO SON OR DAUGHTER
- Thread starter Naruto Uzumaki
- Start date
Daksh jhanjadiya
KF Rookie
if its from the same account then you may recieve income tax notice for eg you have withdrawl money from your parents saving account and after that deposited in your savings account then you may have to give specific reason
Skylar
KF Mentor
There are no tax implications for either you or your parents if you receive ₹10 lakhs as a gift from them during a financial year. Gifts received from specified relatives, including parents, are not treated as income for income tax purposes, as per the provisions of Section 56 of the Income Tax Act. However, it’s essential to declare this gift as exempt income in your Income Tax Return (ITR) under Schedule Exempt Income (EI). So, no need to worry about an income tax notice in this scenario!
Daksh jhanjadiya
KF Rookie
and if it was transfered from your parents account directly to your account
then there is no need to worry
then there is no need to worry
1. Gifts from Relatives are Exempt: Any money or property gifts you receive from specific family members like your parents, siblings, or spouse are not taxable, no matter how much they give you.
2.Gifts from Non-Relatives are Taxable: If you receive gifts totaling up to Rs. 50,000 in a financial year from a non blood relative like an Aunt, Uncle, Cousin or a friend, you don't have to pay any tax on them. However, if the total amount goes over Rs. 50,000, even by just Rs. 1, then the entire amount becomes taxable.
3. Property Gifts with a Twist: If you get property (like a house or shares) as a gift and don't pay the full market value, the difference between what you paid and the property's full value might be taxable. If the difference is less than Rs. 50,000, though, it won't be considered a taxable gift.
4. Special Occasions: Gifts received at your wedding, or those received under a will or upon the death of the donor, are not taxable.
5. Gifts from Specific Sources: Gifts from local authorities, certain trusts, and institutions (like educational or medical institutions) are also tax-free.
6. Income from Gifts: Even if a gift itself isn't taxable, any income you earn from it (like interest from money gifted) will be taxable. So, if you are planning to invest that money somewhere, plan wisely.
Kindly make me correct if I'm wrong somewhere. Thanks for reading.
Prince
KF Expert
Nicely mentioned.1. Gifts from Relatives are Exempt: Any money or property gifts you receive from specific family members like your parents, siblings, or spouse are not taxable, no matter how much they give you.
2.Gifts from Non-Relatives are Taxable: If you receive gifts totaling up to Rs. 50,000 in a financial year from a non blood relative like an Aunt, Uncle, Cousin or a friend, you don't have to pay any tax on them. However, if the total amount goes over Rs. 50,000, even by just Rs. 1, then the entire amount becomes taxable.
3. Property Gifts with a Twist: If you get property (like a house or shares) as a gift and don't pay the full market value, the difference between what you paid and the property's full value might be taxable. If the difference is less than Rs. 50,000, though, it won't be considered a taxable gift.
4. Special Occasions: Gifts received at your wedding, or those received under a will or upon the death of the donor, are not taxable.
5. Gifts from Specific Sources: Gifts from local authorities, certain trusts, and institutions (like educational or medical institutions) are also tax-free.
6. Income from Gifts: Even if a gift itself isn't taxable, any income you earn from it (like interest from money gifted) will be taxable. So, if you are planning to invest that money somewhere, plan wisely.
Kindly make me correct if I'm wrong somewhere. Thanks for reading.
Adding to this -- If Gift is received from Employer, in Cash, Convertible in Cash, Non Monetary, then its taxable under the head income from salary
