• How to declare money from parents proprietorship account to my account?

Hi, in the year 2016-2017, my parents transferred sums of money (2L, 50K) to my account when I needed financial help. They both have proprietorship businesses respectively. I am in the process of filing my ITR. Will this be taxable income? How should I declare this?
Asked 6 years ago in Income Tax

This won't be a taxable income.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Hi,

You can show this money as a gift from your relatives. Gifts from relatives ate not taxable.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

You have 2 options

1. Show it as a gift under exempt income n your parents will show it in their capitals as gift given.

2. Show it as a loan in your balance sheet n your parents will show it as a loan given respectively in their balance sheets.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

If this was as refundable loan then you need to show in the liabiity side.It wont be taxable income

Vidya Jain
CA, Kolkata
1008 Answers
58 Consultations

4.8 on 5.0

No this is not taxable, you can show this amount as gift or loan from parents

Lalit Bansal
CA, Delhi
773 Answers
61 Consultations

5.0 on 5.0

Hi,

Gifts given by your parents to you is exempt in your hands.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

Hello,

This is not taxable and is not to be declared in the return.

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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