• Is money received from parents taxable?

Hi,

I am in process of purchasing a property. My parents are providing the downpayment amount Rs. X. They will credit the amount directly into my account. Following are my queries :

a) Do I need to pay tax for this amount?
b) If not, do I need to disclose this amount while filing tax return?
Asked 7 years ago in Income Tax

No amount received from parents is not taxable. No, it is just a capital receipt

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

Hiii

No you need not pay tax on gift from parents

for safer side make a gift deed for above transaction

and for disclosing in ITR its depend on which ITR form you are filling

Lalit Bansal
CA, Delhi
773 Answers
61 Consultations

5.0 on 5.0

Dear Sir,

You don't need to pay any tax on this. Yes, you need to show this amount under exempt income in your ITR.

Further, it is advisable to prepare gift deed for the same.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

It can be shown as gift if not payable again to parents.

Mahendra Chaudhary
CA, Pune
22 Answers
2 Consultations

4.3 on 5.0

Hi,

Money or gift received from parents are not taxable, but you are required to disclose the amount under exempt income as gift received from relatives.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Dear Sir,

a) No need to pay tax. you can show the amount either as loan or as gift.

b) No need to disclose if its loan but if its gift than need to disclose the same.

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

No. Gift from Parents are exempted.

You can declare the same in exempted one or also ignore the same

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
164 Consultations

5.0 on 5.0

Hi

Gift from parents is exempt from tax. Disclosure in ITR will depend on which form you are filling.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

a) No. Any amount received as Gift from Parents is not taxable

b) Yes. You have to disclose the amount received as Exempt Income in your IT Returns for the year in which the amount is received

Pradeep Bhat
CA, Bengaluru
542 Answers
94 Consultations

5.0 on 5.0

Hello Sir,

No money received from your parents is Tax free.

You have the disclose the amount received from them and as a precautionary measure prepare a Gift deed and keep it for your records.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

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