Tax liability on Cash Gifts received on marriage.
As per the provisions under section 56 of the Income Tax Act,1961, any sum of money, the aggregate value of which exceeds Rs.50,000 received by an individual during the Financial Year(FY) without or for inadequate consideration, is taxed under Income from other sources in the hands of the recipient.
However, any amount received from the specified relatives, or that received on the occasion of marriage, would not be taxable in the hands of the recipients ie Groom and Bride. more
However, any amount received from the specified relatives, or that received on the occasion of marriage, would not be taxable in the hands of the recipients ie Groom and Bride. more
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Extravagant in marriages and functions is good. so much black money is coming out and turning to be white with large fun. Here it is to be noted that so many people make some money on this function. It is not harming any body. more
Aug 11
The details of Gifts received From specified Relatives is given below:- As per the Income tax act, the Gifts received from any of your relatives are fully exempt from tax. Whether you are received the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts. Here the “relatives” term defines by the Income Tax act as follows : Spouse of the individual Brother or sister of the individual Brother or sister of the spouse of the individual Brother or sister of either of the parents of the individual Any lineal ascendant or descendant of the individual Any lineal ascendant or descendant of the spouse of the individual, Spouse of the person referred to in clauses (ii) to (vi). For example if you are receiving gift of Rs.100000 from your uncle (your mother’s brother), it is fully exempt from the Tax. Whenever you get the gifts please apply the relations in the above list to ascertain whether you are liable to pay any tax for the received gift. - more
Aug 11
I think there should be a limit of Gift donations in marriages. That is only to be carried out by Parents of Bride marrying. Gifts from relations & friends should be taxed. Limit should be set for gifting . I cannot give any amount to be set but that is the remit of Taxman. Giving away huge dowry should be restricted and taxed as per IT rules. All the citizens should pay their dues in taxes regularly & punctually as required . more
Aug 11
What do you think these big birthday or marriage anniversary celebrations are? Guests are asked to bring cheque for say Rs xxx. When they give cheque, same amount is paid to them in cash. Now host has converted his black into white, but guest is now more black money. He too will conduct another party. Another way is if the cheque amount is xxx, cash exchange may be yyy. Doctors, politicians are experts in this. more
Aug 11
Who are those specified relatives who can pay or accept donations/gifts,without payment of tax. more
Aug 11
