Gift from close relatives are exempt but not from other relatives it has to be added to Income from other sources. Your page does not have a column but IT webpage and excel utiity has relevant columns,
2) Is balance sheet necessary for an INDIVIDUAL with intra day profits/losses. It is not a proprietoryship concern. The page in excel gets validated if left blank. Please guide.
Further whether the documentation of the gift through cheques can be done on a plain paper notorised or on stamp paper notarised. The donor is in foreign country and received through neft/cheques
Hi @Venkat
A gift from a relative as per the IT Act is exempt from tax. A gift up to ₹50,000 from a non-relative is exempt from tax.
On Quicko, you can enter this under Incomes > Other Sources > Exempt income > Gift.
Since intraday and FnO trading is a business income, and you are required to file ITR 3, a balance sheet is necessary. The balance we are asking for pertains to your intraday trades, which is a business income and hence you can just enter the balance with the broker and proceed with your return.
As such it is not mandatory to get a gift through cheque or NEFT notarized as if it is received from a relative it is exempt. However, if you wish to, you can get it done.
It is not from a close relative andhence has to be shown as income as per the income tax act. The relative is a cousin. Please refer IT act. The amount is more than Rs.50000/=
Hi @Venkat
If the gift is from a non-relative exceeding ₹50,000 then it is taxable under IFOS as per the IT Act.
While filing from your platform half way through i deactivated since I am not sure where IFOS canbe posted under Sec 56 (2). Further deductions under 80D 80E 80DD are not found.
Second does it file directly into the IT department website or I copy the file and thenupload it in the IT webpage as json file format. Is there a provision for preview of the return before E verfication. These details are required before doing it myself. My excel utility is ready but I prefer quicko since it transfers the amount inCG without hassles.
Hi @Venkat
Section 56(2) of the Income Tax Act lays down provisions for tax on gifted shares. A gift of monetary value exceeding ₹50,000 from a non-relative is taxable as Income from Other Sources (IFOS) at slab rates. You can add this income under Add Income from Other Sources : Help Center > Any Other > Any other sources on Quicko.
You will also be able to add 80D, 80E & 80DD deductions by navigating to Add Tax Breaks : Help Center on Quicko.
When you e-file from Quicko, your return is directly submitted to the ITD.
You can review your return on Quicko after it is prepared and then proceed to e-file and e-verify. In case you wish to revise your return, you can also File Revised Return : Help Center from Quicko.
Hope this helps.
Thank you very much . I shall try. One more question, please. Can the balance sheet be nil if the profit/loss is less than 2T to 3T. Or should i fill the cash on hand in Other cases as shown in ITR3 website. The screeshot will help you to answer my question.
Does it mean that I have to show the bank balance alone in other cases No. 6 of ITR3 of BS
Hi @Venkat
The balance sheet cannot be 0 if you’re filing ITR 3.
You can Ask an Expert, as the expert will be able to guide you better for this.
A quick question. My wife is an house wife and has made intra day profits Rs 1100 and short term profit .217. She has no other income than her own savings. Is it necessary to file IT retn. Further AIS is underreported.
Second , can she file it in ITR2 without reducing income or onlu ITR3
Hi Venkat,
It is always advisable to file an ITR. Moreover, as intraday trading is considered a business, ITR-3 needs to be filed.
Hope this helps!
man! you’ve put yourself in a tight spot. If you declare an income of less than 6% of your turnover then its mandatory to get an audit done by a CA - This itself costs anywhere between 20 - 30K. That said Quicko does the same for ~ 10K. Nevertheless I think you’re better off not declaring this income than pay such a hefty sum for an audit. - of course this is not legally right.
Can you please confirm if i gave some money as gift to my father or mother on their birthdays then:
- can i claim tax exemption on that amount? if yes then is there any amount limit on which tax exemption can be claimed and under what section of IT?
- can my father or mother claim that tax exemption on that amount? if yes then is there any amount limit on which tax exemption can be claimed and under what section of IT?
Thanks in advance.
Hi @brijesh ,
- Gift from relatives is exempt from tax. So if you gift money to your father/mother then it will be exempt in their hands.
‘can i claim tax exemption on that amount?’ - No, you cannot claim any exemption
- Yes - gift from you is exempt in their hands. There is no limit for such exemption. It should however be declared in their income tax returns under exempt income.
Read this article for detailed information regarding gifts. And also to check who falls under definition of ‘relative’ under the Income Tax Act.
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- Can I give gifts to my Nephews ( Sisters’ sons) ?
- One nephew is an Indian citizen, another is a Singapore citizen and a third is an Australian citizen?
- What are the tax implications for my nephews and for me?
- Do I have to take permission from RBI or any of the authorities and it so, what is the procedure?
Hey @nayakd1,
Yes, you can give gifts to your nephew. As you will be considered a relative as per the IT Act, the gifts will be exempt from taxes. There will be no tax implications, however, the amount needs to be reported as exempt income by your nephews.
Hope this clarifies.
Thanks Mam for your prompt reply. But as i have stated in my question, two of my nephews are not Indian citizens now and they do not reside in India.
How do I remit gift in rupees to them or for that matter in dollars? Is permission of RBI or any other authority is needed?
Hey @nayakd1,
Transferring of money overseas can be done with the help of any entity authorized by the RBI and has a license as an authorized dealer. To understand the documents required to incur such a transfer you can connect with your bank which will guide you accordingly.
Hope this helps!
Given 10 lacs to a friend (I have already paid tax) will there be any TAX demand on any of us
Do we need to declare it somewhere
Hey @mkv,
If the money was given as a gift, and as the value exceeds ₹50,000, the amount would be taxable in the hands of the receiver.
It was given as loan