| Question And Answer | |
|---|---|
| Subject: | GIFT transactions f.y.24-25 |
| Category: | Income-Tax |
| Querist: | kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | Gift, section 56(2)(x), Unexplained cash credit |
| Date: | March 19, 2025 |
Sir,
It assessess cash Gift to grandson rs:1 crore amount through on bank channel mode dt:10-01-25
Assessess source of income fds cancel after gift money amount paid to grandson but assessess capital account balance rs:50 lacs show in balance sheet
Question:
Assessess gift transaction taxable or exempt and different amount rs:50 lacs sec 68 provision applicable for it act.
The Rs. 1 crore cash gift to the grandson is exempt from tax in the hands of the grandson under Section 56(2)(x), as it is received from a relative (grandparent).
As regards Section 68, the assessee will have to provide documentary evidence to prove the source of the balance Rs 50 Lakh to avoid it being taxed as “unexplained cash credit” in the assessee’s hands.
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