1. Income tax returns filing: No tax on gift received from relatives in form of cash

Income tax returns filing: No tax on gift received from relatives in form of cash

Capital gains on debt mutual funds are chargeable to tax depending upon your period of holding.

By: | Published: November 14, 2017 5:21 AM
Note ban, Income Tax Department, tax returns, demonetisation, tax evasion, detailed investigation, Operation Clean Money, black money, I-T department The Income Tax Department has picked 20,572 tax returns for “detailed scrutiny” suspecting discrepancies in incomes before and after demonetisation, official sources said today. (Image: Reuters)

I have gifted Rs 5 lakh to my wife in cash. If she deposits the money in her bank account, will she have to pay any tax on it?
– Jeetender Verma

Gifts to relatives are out of the purview of taxation and hence not taxable in the hands of the recipient, i.e., your wife is not require to pay tax on the cash received from you. Here, it is presumed that you would have included this money in your income and paid the due taxes on this money.

Do I have to pay capital gains tax on debt mutual funds?
—Pinaki Ghosh

Capital gains on debt mutual funds are chargeable to tax depending upon your period of holding. If held for three years before sale, the capital gains are chargeable to tax at your slab rate. However, if the same were held for less than three years at the time of sale, capital gains shall be chargeable to tax @ 20% (with indexation).
I have a turnover of Rs 1 crore from my spare parts manufacturing factory. Do I need to file GST under the composite scheme.
—Deepak K

Composition scheme is a scheme available to small taxpayers whose aggregate turnover in the preceding financial year did not cross Rs 1 crore/ Rs 75 lakh ( for specified states). A person registered under the Goods and Services Tax (GST) provisions needs to opt for composition scheme (subject to prescribed conditions) in order to avail the said scheme. It is important to note the following in terms of the composition scheme under GST:

* A person opting for the composition scheme cannot make inter-state supplies;
* A bill of supply needs to be issued in lieu of a tax invoice by a person opting for composition scheme;
* No GST can be charged on the bill of supply by a person registered under the composition scheme;
* Further, it should also be noted that a person paying GST under the composition scheme cannot avail Input tax credit on its purchases;
* Returns under GST would need to be filed on a quarterly basis by a composition tax payer.

Please note that I have assumed that Rs 1 crore yearly turnover in the instant case includes value of all taxable supplies, exempt supplies and exports made by all persons with same PAN, but would exclude inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess.

The writer is partner, Nangia & Co LLP. Send your queries to fepersonalfinance@expressindia.com

  1. B
    BRYAN WHYTE
    Nov 16, 2017 at 10:40 am
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    Reply
    1. J
      Joel Samth
      Nov 14, 2017 at 5:13 pm
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      Reply
      1. S
        Subramani
        Nov 14, 2017 at 4:21 pm
        Answer to first question is incorrect and incomplete. This would only mislead the readers.
        Reply
        1. B
          Bharat
          Nov 14, 2017 at 3:50 pm
          Dear sir, With regards to Capital gains tax on debt schemes, the author told complete opposite. Tax 20 with Indexation is Long-Term capital gains, i.e., held for three or more years and tax as per the individual's marginal rate of taxation if held for less than 3 years.
          Reply
          1. D
            Dhaval
            Nov 14, 2017 at 12:10 pm
            I got 2 lakhs in cash from my father in law . He is USA citizens. Wt tax I have to paid?
            Reply
            1. A
              Akhilesh Singh
              Nov 14, 2017 at 11:21 am
              My father retired from Railway. His SBI account is pending die to death of my father in 2016. The whole sum money is still pending with bank telling to clear itr Rs. 201600. income tax department is asking for OTP. Is that any other way to clear ITR without mobile OTP. Please suggest
              Reply
              1. C
                Chandrashekhar Gaud
                Nov 14, 2017 at 10:59 am
                If i my 10 yrs old flat and amount received in cheque .Then my one and only son and myself purchase a bigger flat with bigger cost with the loan taken by son i want to know shall i pay capital gain and shall i have to return as i m retired 62 yrs pensioner under tax limit i getting pension.Pl guide. Thanks.
                Reply
                1. B
                  Bharat Arvind
                  Nov 14, 2017 at 10:52 am
                  reply on debt mutual funds WRONG - exactly opposite slab rate if held below 3 yrs 20 post indexation tax above 3 yrs
                  Reply
                  1. R
                    Ramesh
                    Nov 14, 2017 at 10:25 am
                    Thanls
                    Reply
                    1. S
                      Sunil Kumar Prajapati
                      Nov 14, 2017 at 10:17 am
                      I am a contractor and I have received the payment of the GST bills for repair and maintenance services after 3 months when submitted the bills in the department. I had issued the bills in 31 July then payment made by the department in Oct. So please suggest me for gst return file in whose month.
                      Reply
                      1. K
                        Krishnamohan
                        Nov 14, 2017 at 10:17 am
                        Dear sir, I sold my house for 98lacs and I want to deposit in bank and want to enjoy the interest for my monthly expenses. Is it required to pay income tax on this 98 lacs. Krishnamohan
                        Reply
                        1. S
                          Sateesh Kumar Nari
                          Nov 14, 2017 at 9:45 am
                          Here is a doubt from me..How govt should know taxable or not If gifted money is deposited by cash
                          Reply
                          1. G
                            Gopal
                            Nov 14, 2017 at 9:12 am
                            Deposit of house lease amount by cheque will attract any deductions
                            Reply
                            1. R
                              Rahul
                              Nov 14, 2017 at 9:05 am
                              If my Father will give me 5 lakhs Rupees through online transfer to my bank account, is this taxable? And is there any limit of tax free amount?
                              Reply
                              1. P
                                Pratap Vishnoi
                                Nov 14, 2017 at 8:53 am
                                How interest earned on FD or savings are taxed ?
                                Reply
                                1. D
                                  dev d
                                  Nov 14, 2017 at 8:53 am
                                  Sorry after demonitization Public has no cash to Gift.
                                  Reply
                                  1. P
                                    Parimal
                                    Nov 14, 2017 at 8:49 am
                                    I have gifted Rs 5 lakh to my wife and transfer in saving of my wife, will she have to pay any tax on it?
                                    Reply
                                    1. S
                                      saurav gogoi
                                      Nov 14, 2017 at 8:46 am
                                      i will join the job...
                                      Reply
                                      1. P
                                        Prateek kumar
                                        Nov 14, 2017 at 8:43 am
                                        Prateekgolu840
                                        Reply
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