• Will I need to pay income tax if my uncle transfers money

Hello,

My uncle (Mother’s brother-unmarried ) is about to transfer funds to my account.Is there any income tax that i need to pay?How much amount he can transfer,any restrictions?
Asked 4 years ago in Taxation

3 answers received in 2 hours.

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10 Answers

1)By virtue of Section 56(2), any sum of money exceeding Rs. 50000 received without consideration by an individual or an HUF from any person is chargeable to tax as income under “other sources” subject to some exclusions

 

 

2) The recipient is not required to pay income tax if the money or property is received from a relative or under certain specified circumstances such as on the occasion of marriage or under a will or by way of inheritance, or in contemplation of death of payer etc. This rule applies irrespective of the value of the gift.

3) Here, relative is defined to mean spouse, brother or sister, brother or sister of the spouse, brother or sister of either of the parents, lineal ascendant or descendant, l .lineal ascendant or descendant of the spouse and spouse of the aforementioned persons.

4) you dont have to pay income tax 

 

Ajay Sethi
Advocate, Mumbai
94734 Answers
7539 Consultations

5.0 on 5.0

Ans: Yes you will be required to pay under the Income Tax Act if he transaction is shown to be in white.

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

No income tax if he has paid tax for the said amount in his returns.

Prashant Nayak
Advocate, Mumbai
31954 Answers
179 Consultations

4.1 on 5.0

Yes, it's depends upon the amount how much your maternal uncle is going to transfer bon your name. There are different slabs of gift transfer amount.

 

Whether it's loan or help or gift amount.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

You can make a gift deed for same amount. The gift is exempted under taxation. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

No income tax but stamp duty on gift deed. 6 % on property govt,. value.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

You can give an amount up to Rs. 50,000 to a family member without it being taxed as per the Income Tax Act, 1961

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Tax queries: Gifts received from relatives are not taxable. Gift from specified relative is exempt from tax as per Section 56(2) of the Income Tax Act. The gift will have to be supported by a gift deed. 

Therefore, there will not be any tax liability on the gift  received by you and it is not taxable on your uncle also.

Any income received on the gift amount will be taxable in your hands. 

The gift will have to be supported by a gift deed, which is not required to be registered, however, please consider the issue of payment of stamp duty on gift of movable property.

 

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

No you don't have to pay income tax on money recieved from maternal uncle as gift 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Hello,

 

It depends on the nature of transaction and how your uncle is accounting such transfer for money into your account.

 

In an ideal scenario it shall be treated as an Income from Other Source for the same financial year.

 

For any query / clarification, please do not hesitate to contact me.

Nitesh Agarwal
Advocate, Mumbai
21 Answers
3 Consultations

4.5 on 5.0

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