| Question And Answer | |
|---|---|
| Subject: | GIFT |
| Category: | Income-Tax |
| Querist: | Sharjeel |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | brother, Gift, Gifts |
| Date: | August 10, 2023 |
Brother paid 5 lakhs out of 20 lakh directly to dealer of properties on behalf of property purchased by his sister and balance paid by sister herself. Will 5 lakh paid by brother is termed as “Gift” under Income Tax Act?
As we understand, a brother has paid a developer on behalf of his sister a sum of Rs. 5 lakhs. It is advisable to execute a gift deed of Rs. 5 lakhs. Even if it is termed as “gift”, gift from a relative is exempted under section 56(2)(x) of the Act.
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