Income Tax; Income from gift by relative taxable in hands of receiver ? TAXCONCEPT

By Chirag Nangia

  • Under which section of the Income Tax Act can my sister claim exemption for cash given to my mother who will invest in her Senior Citizen Savings Scheme?

—Mangalaprasad Patnaik

There are no provisions for deductions / exemptions for the person giving a gift to mother and sister as per IT rules. There is no taxability in the hands of your mother on receiving such a cash gift. However, any income earned by her on such cash gifts is taxable and reported in her respective ITR.

For NPS tier-2 accounts, withdrawals within 36 months attract short-term capital gain tax and are taxed as per investor’s tax slab rate. After 36 months, it is long term gain and taxed at 20% with indexation benefit.

—Prakash Agarwal

Since effective transfer took place in FY22-23 and the TDS and consideration are reflected in Form 26AS and AIS, the capital gains may be offered to tax in FY22-23 only.

—Abhijit Gupta Sarma

Since a specific investment, i.e., FD has been made from the funds contributed by the wife, entire interest income shall be taxable in her hands.

  • I had remitted online advance income tax for AY 23-24. My account was debited instantly but the amount is showing in the ‘e pay tax’ column of the I-T portal with CRN number & not reflect-ing in my AIS. What should I do?

—Name withheld

CRN is reflected for challans for which payment has not been made. Accordingly, advance tax might not have been paid and you may contact your bank. For paid challans, CIN is reflected on the portal.

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