GIFT transactions sec 68 and sec 69 provisions applicable f.y. 24-25

[Sundaraiah kollipara]

Sir,
It assessess cash Gift to grandson Rs.1 crore amount through on bank channel mode dt:10-01-25

Assessess source of income TDS cancel after gift money amount paid to grandson but assessess capital account balance rs:50 lacs show in balance sheet

Question:

Assessess gift transaction taxable or exempt and different amount rs:50 lacs sec 68 provision applicable for it act.

[FCA Adv amit aggarwal]

Proviso to Section 56 (2)(x) of the Income-tax Act, 1961 (Act) specifies that the said clause shall not apply to any sum of money or property received from any relative.

Further, explanation to the said proviso states that the expressions, "relative" shall have the same meanings as respectively assigned in the Explanation to section 56(2)(vii) of the Act.

As per the said explanation under section 56(2)(vii) of the Act, "relative" means any lineal ascendant or descendant of the individual.

gift to grandson in hands of grandson is exempt

AI Summary

Relative-based gift exemption applies where a grandson receives money from a grandparent under income tax law. Cash or property received from a relative is excluded from taxation under the proviso to section 56(2)(x) of the Income-tax Act, 1961. The term 'relative' includes a lineal ascendant or descendant of the individual. Accordingly, a gift received by a grandson from a grandparent falls within the relative-based exemption framework and is not treated as taxable receipt under that provision.