I Wish to give a gift/loan of Rs. 2 Lakh to my mother who is in India. If I transfer this amount from my NRE A/c to her saving account in India – Will she be taxed ?
A.Gift amounts received from any close relative are not taxable in the hand of either the donor or the donee. it is perfectly okay to give the gift as intended by you to your mother, both of you will not be taxed on this transaction. As far as the law is concerned, you may give the same as a loan also if you desire. note that the income generated in future from this gifted amount is eligible of tax, unless your mother’s total income, including income from the gifted corpus, is less than Rs. 2.25 lakh (if she is senior citizen) (See Income Tax Slab for the financial Year 2008-09) for the financial year.
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{ 7 comments… read them below or add one }
A husband bought a piece of land for Rs.80 lacs in 2001. He gifted it to his wife in 2003. In 2005, his wife sold it for a whooping Rs.4.53 crores. Is the wife liable to pay income tax and/or capital gains tax OR the income willbe clubbed in the hands of the husband?
Is gift of Rs.3 lacs received from sister’s son (an Indian now American citizen) exempt from taxation? If not, can it be treated as a loan?
is income received from husband who reside in abroad… is taxable to his wife or not…
sales incentives are exempt from tax or not
how to compute capital gain..
I received a gift from my uncle Rs 2.5 lac . this gift is taxable or not ?
i have two questions.
1. i want to make a gift to my wife by cheque for purpose of investment of the amount in purchasing a flat. Is the amount gifted taxable in the hand of husband/wife?
2. in 2008, i had given some loan to my wife for purchase of flat which she has invested. whether this amount can be converted into gift in the balance sheet of mine as well as wife?
kindly provide specific answers with sections of IT ( and gift tax) act.