Sanjay, a resident of India received gifts during the financial year 2021-22 as follows: (a) ₹ 40,000 from his elder brother residing in Jaipur, You need to advice Sanjay with regard to tax treatment of each of the above

CS Professional · Advanced Tax Laws · PYQS · December 2022
Sanjay, a resident of India received gifts during the financial year 2021-22 as follows: (a) ₹ 40,000 from his elder brother residing in Jaipur, You need to advice Sanjay with regard to tax treatment of each of the above item and calculate the total taxable value of the gifts in the hands of Sanjay for the assessment year 2022-23.

Answer & Explanation:

The tax treatment of Gifts in the hands of Mr. Sanjay will be as follows: ₹ 40,000 received from elder brother will not be charged to tax because elder brother is covered in the definition of 'relative'. Gift received from relatives is exempt and not chargeable to tax under the Income tax Act, 1961.

Topics: Income Tax Act

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic