Amount taken from family _ do I need to pay tax

[Abinash Baruah]

I have got one salary account in Citibank for which I am regularly submitting IT returns, no issues.

I have got another savings account with ICICI which was my salary savings account years back and I am running that account for my personal small transactions.Last year , I faced some financial crisis due to which my mother sold out our property at home town and gave majority of that amount to me so that I can come out of it.Now since that amount is recorded in net banking, as per yearly bank statement I will need to pay 20% of that amount.

I can’t afford to pay that amount as tax.

As a financial expert, please let know if anything can be done in completely official way.Any letter to tax department, any request form ….I have no idea.

Looking forward to hearing from any one who has got complete ideas on these issues

Regards

[DR.MARIAPPAN GOVINDARAJAN]

Please treat the amount get your mother as gift which will be exempted your income. For that purpose prepare the gift deed executed by your mother.

[Guest]

Prepare gift deed from your mother and the said gifted amount is tax free

[Abinash Baruah]

Thanks for your reply.

I checked with couple of CAs.One said there is no way.Other said "It could be declared as gift from mother, but my mother has to pay the tax then"

[Guest]

FIRST OF ALL SEE THE CAPITAL GAIN LIABILITY OF YOUR MOTHER AND SEE WHETHER SHE IS LIABLE FOR TAX AND IF YES HOW MUCH AND IS THERE ANY WAY TO REDUCE TAX UNDER ANY EXEMPTION SECTION

AI Summary

Gift exemption may avoid income tax on funds received from a parent, subject to donor capital gains tax implications. Treat the funds transferred from the mother as a gift documented by a gift deed to exempt them from the recipient's income tax, while assessing the mother's potential capital gains tax liability from the property sale and ensuring appropriate documentary evidence and professional tax advice for donor-side compliance.