Treatment of Gift received in Joint Account

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  1. Ibrahim Bhabhu

    Ibrahim Bhabhu New Member

    During 2014 my grandma sold gold jewellery worth 150000 for cash (no proof or any sort of sales bill is available in this regards) and she deposit this cash in the joint bank account where i am the primary holder and my grandma is second holder.The very next day i invest Rs.110000 in mutual fund in her name and remaining 40000 in my name (both different folios) but through the same savings account.So how can i treat this Rs. 150000 can the full amount be shown as gift to me from my grandmother but the question is i reinvested this money in her name in mutual fund (110000) or only 40000 which is invest in my name can be shown as the gift then what about the 110000 how it would be treated in income tax.
     
  2. It looks more logical to show Rs. 40,000 as gift received.

    I'm just wondering if it would make any difference from the point of view of taxation if you show Rs. 40,000 as gift or Rs. 1,50,000 as gift.
     
  3. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Treat the transaction as,your grandma gave Rs.110000/- to you in trust in order to help her in investment in mutual funds and net off the transaction.
    Treat the balance amount of Rs.40000/- as gift received and claim exemption u/s 56(2).
     
  4. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Yeah, it is in continuation to your explanation.
     
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