I got married in August 2015. As dowry my father in law has gifted me Rs. 2.5 lacs in three installmets (Rs. .5 lacs on 8.6.2015, Rs. 1 lacs on 28.06.2015 and Rs. 1 lac on 23.07.2015). He has paid same through cheques into my account. My registry marriage was on 19.07.2015 and social marriage was on 9.08.2015.
1. Which date can be treated as date of marriage for tax purpose?
2. Do i need to pay tax on above amounts or claim exemption? I am not clear on "occassion of marriage" mentioned in section 52. Under given circumstances 2 installments were received almost one month before registry marriage, can that be exempt?
3. In case there be any scrutiny, I would have bank statement of father in law and myself and the marriage registration certificate. What else may I keep ready?
Asked 2 years ago in Income Tax from Ghaziabad, Uttar Pradesh
I am ethically not comfortable in answering Dowry related questions.
So I would refrain from answering and request my other professional colleagues to answer this.
To correct my question, it was not dowry, rather it was a gift from my father in law. My remaining questions remain the same.
Asked 2 years ago
It will not be taxable. Gift should be on the occasion of marriage. Not necessarily it should be on the marriage date.
You should have prepared a gift deed.
Please feel free to call/ revert in case of any doubts.
Thanks and Regards
CA, CS, B.Com
Sir first the word dowry is incorrect as it is illegal.
The gift at the time of marriage are exempted. It can be before marriage also but nexus to be proved.
Registry marriage is fine for treating the date of marriage for tax purpose.
You can claim exemption. Occassion of marriage means any gift which is given as part of marriage like jewellery made by parents will be done before marriage but the occassion is for marriage.
The documents as told by you are enough to show at the time of scrutiny
1 registry marriage
3 gift deed from your father in law(recommended,not mandatory)
Gift received on the occasion of marraige is exempt from tax. so you will not be liable to pay taxes on it.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.