ITR
Gifts from relatives questioned in scrutiny
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Facts
Gifts from specified relatives such as parents are not taxed. But you must prove the gift: who gave it, that they could afford it, and that it was really a gift.
Provisions and law
- Sec 56(2)(x), Income-tax Act 1961 (now Sec 92(2)(m), Income-tax Act 2025)Money received without consideration above ₹50,000 is taxed, except from relatives and in specified cases.
- Sec 68, Income-tax Act 1961 (now Sec 102, Income-tax Act 2025)Credits not explained can be treated as income.
Analysis
Give a gift deed or letter signed by your father, his bank statement showing the transfer, and proof of his income or savings. Bank transfer is much stronger than cash. Show the relationship, for example with a family document. Together these show identity, capacity and genuineness.
Conclusion
- Get a signed gift letter from the donor.
- Attach the donor's bank statement showing the transfer.
- Attach proof of the donor's capacity, such as their ITR.
- Show the relationship.
A Savvy can do this for you
Scrutiny assessment, Sec 143(2) (now 270(8))
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