New ITR2 section Exempt income doesn’t have provision to report gift from relatives anymore. Where to report it?
Pls read the question. You didn’t answer the question. Did you see the new ITR2 section Exempt income? There is no option in Other exempt income to write anything
You are right, I missed your exact point earlier.
In the new ITR-2 utility, there is no separate free-text/narration field to write “gift from husband” under Schedule EI. The notified ITR-2 only shows “Other exempt income” as an amount field, not a description field; the “Nature of income” field is available separately only for DTAA income.
So, for a gift from husband, there is no separate schedule/field where it must be reported if the utility does not provide such an option. It should not be shown under “Income from Other Sources,” because gift from spouse is outside taxability under section 56 gift provisions, as spouse is covered within “relative.”
Therefore, practically:
Do not report it anywhere if the new ITR-2 utility does not provide a suitable field.
Keep the bank trail and gift deed/confirmation for records. Also note that if the gifted amount is invested and income arises from it, clubbing provisions may apply in the husband’s hands.
In this scenario both wife and husband NRI. Should I show this gift in DTAA income ?
Dear,
No, do not show the gift in DTAA income.
A gift from husband is not taxable as income, even if both husband and wife are NRIs. DTAA schedule is only for income where treaty benefit is being claimed, not for a non-taxable gift/capital receipt.
Since ITR-2 has no suitable field, keep bank proof and gift deed/confirmation for records.
For a more detailed review of your case, you may book a phone consultation.
CA Shubham Goyal
Dear Sir,
Hope you are doing well.
It should not be reported under the DTAA schedule. DTAA schedules are for income that is relieved from tax due to a tax treaty, which is not the case here. If the current ITR-2 utility does not provide a specific field for reporting such gifts, there is generally no need to force a disclosure elsewhere in the return.
It is advisable to maintain adequate documentary evidence to substantiate the nature and source of the transaction. Such documentation should include a duly executed gift deed or gift declaration evidencing the donor's intention to make the gift, bank statements or other financial records establishing the transfer of funds from the donor to the recipient, documentary proof of the spousal relationship between the parties, and, where relevant, records supporting the non-resident status of the donor and/or recipient. Maintaining these documents will assist in demonstrating the genuineness of the transaction and facilitate responding to any future queries that may arise during assessment or verification proceedings.
If you require any further detailed clarification or assistance, you may schedule a telephonic consultation at your convenience.
Thanks & Regards,
Payal Chhajed
- No need to report it
- It is not a DTAA income
For detailed discussion you may opt for phone consultation
