Taxability of amount received from father

[madhavvan n]

an individual has received rs. 1 lac from his father the individual is filing his return as a salaried employee is he required to disclose the amount of rs. 1 lac received how it has to be shown whether it is taxable in his hands

[Rama Krishana]

If the amount received from his father is in the nature of gift, there is no need to show separately, but it has to result into increase in assets or capital which should be taken care of. On the other side if it is in the nature of loan or some thing else, you need to treat the same accordingly.

AI Summary

Tax treatment of gifts: familial transfers exempt if bona fide gifts, while loans must be classified and treated as liabilities. If the sum received from a father is a gift, it is not taxable income and need not be separately disclosed as income, though the resultant increase in assets or capital should be recognised. If the amount is a loan or has another commercial character, it must be classified and treated according to that nature and reflected appropriately in the taxpayer's accounts and income tax return.