Gift by way of cash

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  1. LAKSHMI PRABHU

    LAKSHMI PRABHU New Member

    Hi,
    I received some money of 4 lac (by way of cash) in 2013 from my father to purchase flat.

    I have not disclosed this in my IT return in AY 2014-15. Now I received letter from IT dept for clarification.

    My query : Is this cash taxable? Cant it be gift from my father? How to justify and tax exemption? Please suggest.

    Thank you
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Gift received from father is exempted from tax & is not taxable u/s56(2)(vii).
    so u can utilize this amount for any purpose you want and the income earned from it is also not liable to be clubbed in the hands of your father.
    But this has to be disclosed while filing your returns under the the exempt income schedule in ITR.
    might be you deposited this lum sum cash into bank and subsequently department issued notice to u for clarification because, about this no where you have given information in your returns.

    But nothing to worry mam..you can write a letter to your jurisdictional officer saying about the source of this transaction and which is exempted from tax.
     
    Last edited: Apr 1, 2016
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