Income derived from gift-recd amount

If income is derived from gift of say 5 Lakhs is recd from the Father to child or vce-versa, would that income be taxed in the hands of the Donee or the DONOR.

Kindly inform the relevant section-if possible.

asked Sep 27 '11 at 17:40 by Thyagarajan Mani 6123

There won't be any income tax payable to both father and child. This is under section 56(2).

answered Sep 27 '11 at 21:28 by pankaj 5.2k320

Sorry to repeat, Just want to reconfirm, is your reply pertaining to 1) gift received or 2) Income derived from GIFT RECD?
(Sep 27 '11 at 22:08) Thyagarajan Mani
Any amount received from father to child or reverse as gift would be non-taxable. But any income earned by investment of gift amount would be taxable as normal gains.
(Sep 27 '11 at 22:40) pankaj

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Asked: Sep 27 '11 at 17:40

Seen: 946 times

Last updated: Sep 27 '11 at 22:40