Question ID :
44604
082701
A sister has given gift Rs 10Lacs to his brother through bank
whether income derived by brother will be clubbed in sister's income. Further where brother does not earn income
but uses this gift to clear his outstanding liability What will be the consequencies
Posted by
Mahesh Kumar
on
Feb 01, 2024
Filed Under
DIRECT TAXES
• Any sum of money received without consideration, it can be termed as ‘monetary gift’
• Money received from relatives. Brother or sister of the individual;
• The aggregate value of such sum of money received during the year exceeds Rs. 50,000.
• Rs 10 from sister be charged to tax because brother is covered in the definition of ‘relative and aggregate amount of such gift received during the year exceeds Rs. 50,000. It is irrelevant whether brother earns or not & how he uses the amount gifted.
Posted by
Hari Beldona on
Feb 01, 2024
Answer ID :
85311
1. Income derived by brother shall not be clubbed into the income of Sister.
2. Brother is free to utilise the gifted money for earning income or to pay his outstanding liability.
Posted by
Raj Rani Lakra on
Feb 06, 2024
Answer ID :
85318
Gift from sister to brother is exempt as they fall under relative definition. Income would not be clubbed in the hands of the sister. Brother can use this gift in any way.
Posted by
SHUBHAM SONI on
Feb 09, 2024