Gifts received by a person from his/her relatives who are lineal ascendants and lineal descendants do not attract income tax, explains Amit Maheshwari.
Is gift given to or taken from maternal grandparents taxable under Income Tax Act/ Gift Tax Act?
– Vikram Kumar
Gifts received by a person from his/her relatives who are lineal ascendants and lineal descendants do not attract income tax. Hence, maternal grandparents being lineal ascendant to that person, any gifts received from them shall not be taxed as income.
Can short-term losses in shares be set off against long-term gains? If yes, for how many years?
—K S Iyer
As per I-T Act, losses arising under the head capital gains cannot be set off against any other head of income but within the head capital gains only and short-term capital loss is allowed to be set off against both long-term and short-term capital gains. Further, if the loss arising from the short term capital gain cannot be set off in the same year, then such capital loss can be carried forward to the next eight years.
My daughter and son-in-law are NRIs based in South Korea. My son-in-law is a taxpayer in Seoul and transfers money to my daughter’s savings account in India. She is a housewife and invests the money in the Indian stock market. Is there any tax liability for my daughter and will she have to file IT returns?
The money transferred by your son-in-law to your daughter will not be taxable. However, if she earns any income by way of selling these stocks, then such income earned by her instead of being taxed in her hands, will be clubbed in the hands of your son-in-law as per the clubbing provisions of the I-T Act, 1961,and hewill be required to file income tax returns in India if the annual income exceeds Rs 2,50,000.
Due to some mistake at my end, wrong Aadhaar number has been linked with my PAN card. How can it be corrected?
As of now, there is no online linking procedure available in e-filing website to rectify if wrong Aadhaar is linked. To get this done, you will need to fill a PAN correction form with a copy of your Aadhaar and tick at the option signifying change in Aadhaar and submit the form with one of the facilitation centres. The form can be downloaded from https://www.tin-nsdl.com/downloads/pan/ download/PAN-CR-Form_NSDL%20e-Gov_01.06.16.pdf.
The author is partner, Ashok Maheshwary & Associates. Send your queries to email@example.com