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.
1 Answers
There won't be any income tax payable to both father and child. This is under section 56(2).
Sorry to repeat, Just want to reconfirm, is your reply pertaining to
1) gift received or
2) Income derived from GIFT RECD?
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.
Related