Minor Ravi received ₹60,000 by way of gift on his birthday from grandparents and ₹10,000 from non-relatives. He also received a gold chain from his father's friend whose fair market value on the date of gift was ₹45,000.
CS Executive · Tax Laws and Practice · PYQS · December 2019
Minor Ravi received ₹60,000 by way of gift on his birthday from grandparents and ₹10,000 from non-relatives. He also received a gold chain from his father's friend whose fair market value on the date of gift was ₹45,000. The amount of income of minor Ravi taxable (after exemption) in the hands of parents would be :
Answer & Explanation:
The official key records '*'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: None of the options are correct. As per section 56(2)(x), the aggregate value of amount exceeds ₹ 50000 is separately for each categeory i.e. money received in cash, moveble property as well as immovable property. In this case, Cash of ₹ 10000 is not taxable being not exceeds ₹ 50000. Further, gift in kind ₹ 45000 is also not taxable being not exceeds ₹ 50000. Gift received from relative (Grandparent) ₹ 60000 is not taxable as being section 56(2)(x) not applicable in this case.
Topics: Income Tax
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