Please Help: Gift/Loan from NRI
Posted Date : 14-Jul-2011 , 06:03:00 pm | Posted By: Ashish Kotecha
Category :
Income Tax | Answers :
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My client wants to take gift from his cousin(not a real) residing in USA. What is the taxability status from Income Tax Act?What is the position if client takes loan from NRI?Whether any other tax is applicable? |
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Answers:
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 Answer by: CA. Sachin Data |
| As per the provisions of Section 56(2)(vii) of the IT Act, 1961, certain transactions are covered under the purview of the Act. However, the amount/value of the gift is going to determine the taxability of the same. Further, if your Client's cousin from USA is covered under the definition of "RELATIVE" from the Client's perspective, then whatever may be the amount the same is not going to be taxed anyhow under the IT Act.
I think this information must be useful to you. In case you need much clarification please brief out the factual situation with the amounts....
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| Answer by: CA VIKAS JAIN |
| cousin is not covered under the definition of relative, so upto fifty thoused gift is exempted bayond that will be count as income of the receiptiant.
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