Cash Of Over Rs. 50,000 As Gift From Relative Is Non-Taxable For Receiver

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Any amount received over Rs. 50000 in a financial year from a relative as a gift is not taxable in the hands of the receiver. And the terms of the conditions in which the person shall be considered a relative or not are well laid down in the Income tax act.

Cash Of Over Rs. 50,000 As Gift From Relative Is Non-Taxable For Receiver

However in an instance, when the transfer without consideration is to a non-relative and equals to over Rs. 50,000 in a financial year then the tax implication arise for the receiver of funds.

Also, playing safe it is advised that such transfer should be effected through a gift deed and is in written format. So a gift deed is very vital and does not result in any kind of tax liability for your or the payee individual.

Husband transferring money in his wife's account for household expenses- Tax implications in such a case

In another case, when the husband transfers money to his wife for household expenses, this as per the provisions of Income Tax shall be deemed as gift. And shall not result in tax implications for the wife.

But for you, any income accrued on such amounts shall be added to your income as per the clubbing provisions and you shall have to pay tax on it.

Goodreturns.in

Read more about: tax, gift, gift deed, taxation
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