Sanjay, a resident of India received gifts during the financial year 2021-22 as follows: (b) ₹ 1,99,000 from his friend residing in USA You need to advice Sanjay with regard to tax treatment of each of the above item and

CS Professional · Advanced Tax Laws · PYQS · December 2022
Sanjay, a resident of India received gifts during the financial year 2021-22 as follows: (b) ₹ 1,99,000 from his friend residing in USA 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: ₹ 1,99,000 received from his friend will be chargeable to tax and to be included in the income of Mr. Sanjay because friend is not covered in the definition of 'relative'.

Topics: Income Tax Act

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