Tax on gift received from parents by cash on monthly basis

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Tax on gift received from parents by cash on monthly basis

I am a govt.serviceman. My wife run a business and file her ITR every year. But apart from the business income, she invested in mutual funds approx Rs.10000/- pm for five years from 2011-2015 with the help of cash which she received in cash from her parents every month. She did not show this income and investment in her ITR and business cash books. Her MF investment now doubled in 2018. She redeemed all MF in march 2018. How can she show this investment and LTCG in her ITR and business cash books?????”

Profile photo of sonu Asked By: sonu 1 replies 1 helpful answers Last Updated: 3 weeks, 6 days ago
  • Profile photo of sonusonu
    Participant

    I am a govt.serviceman. My wife run a business and file her ITR every year. But apart from the business income, she invested in mutual funds approx Rs.10000/- pm for five years from 2011-2015 with the help of cash which she received in cash from her parents every month. She did not show this income and investment in her ITR and business cash books. Her MF investment now doubled in 2018. She redeemed all MF in march 2018. How can she show this investment and LTCG in her ITR and business cash books?????”

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    Yes, any amount received from parents is exempt in hands of the daughter because it is taken a GIFT FROM RELATIVE. If she has invested such income into any other form (mutual funds) then such investment would be taken legally valid. And Depending on what kind of plan have you invested it will be taxable or tax-free. If it is taxable then LTCG would be calculated thereon and it will be shown in her income tax return along with the other source of income.

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