Friday, October 9, 2009

Affidavit Must if you take gift of over Rs 50k from Kin

From now on, when you get gift -in-kind valued at more than Rs 50,ooo from your parents or other relatives make sure you have a sworn affidavit declaring the donor as your Kin.

the Central Board of Direct Taxes (CBDT) has recently ruled that 'any gift in kind'ecxeeding Rs 50,000 would be taxable at the at the hands of the donar 'except from relatives or given during occasions like marriage or by the way of inheritance of the donee.

''These donee has to get an affidavit affirming the donar to be his mother,father,brother,sister or any other relative so that at the time of claiming the exemption under the new arrangement,the income tax assessment officer can have an on-spot verification without any delay.'' a seniour I.T official said.

An individual can preferably get one affidavit listing all such gifts in the entire assessment year from different or the same relative.The individual will hence reduce the trouble of preparing an affidavit each time he receives a gift,the official said.

During the assessment of IT returns the affidavit will save you from hassles of proving the gift,both movable and immovable,being received or inherated from any relative residing in any part of the world.It will lso establish the donee's relationship with the donor,the official said.

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