ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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unexpected expense
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anticipated income
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variable expense
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unanticipated income
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Detailed explanation-1: -all gifts are charged to tax Hence, if the aggregate value of gifts received during the year exceeds Rs. 50, 000, then total value of all such gifts received during the year will be charged to tax (i.e. the total amount of gift and not the amount in excess of Rs. 50, 000).
Detailed explanation-2: -"According to Section 56(2)(vii) of the Income-Tax Act, gifts received from relatives are not taxable. The specified list of relatives includes grandparents and grandchildren as well. “
Detailed explanation-3: -Show gift as exempt income. Gifts are not covered under section 10. In ITR, under the exempt income, select ‘any other’ and mention gift from father in description box. It should be disclosed as exempt u/s.
Detailed explanation-4: -Examples of regular gifts could include Christmas and birthday gifts, annual family holiday, insurance policy premiums, education costs, private healthcare arrangements, etc.