[carboy]

I have 2 cousins - brother & sister. The brother runs a small business in the UAE. The sister is in India. The sister is married & not working. The brother wants to send 20,000 Rs every month to the sister's account in India?

I think gifts between siblings don't need to pay gift tax. But what do we need to do to make sure no tax issues happen?

Do the brother or sister need to produce any affidavit monthly or years to show this as a gift? Sister doesn't file any tax returns as of now since she has no income. Does she need to file a tax return once the brother starts sending her the money?

[Engine_Roars]

Originally Posted by carboy

I have 2 cousins - brother & sister. The brother runs a small business in the UAE. The sister is in India. The sister is married & not working. The brother wants to send 20,000 Rs every month to the sister's account in India?

I think gifts between siblings don't need to pay gift tax. But what do we need to do to make sure no tax issues happen?

Do the brother or sister need to produce any affidavit monthly or years to show this as a gift? Sister doesn't file any tax returns as of now since she has no income. Does she need to file a tax return once the brother starts sending her the money?

Is there any other income in your sister's name? If not then 20000 monthly is too small an amount to create any issues even if you have to show it as income.

[carboy]

Originally Posted by Engine_Roars

Is there any other income in your sister's name?

No, the sister has no other income.

Originally Posted by Engine_Roars

If not then 20000 monthly is too small an amount to create any issues even if you have to show it as income.

So you are saying no need to do any gift deed annually or file any income tax returns etc?

[Engine_Roars]

Originally Posted by carboy

No, the sister has no other income.



So you are saying no need to do any gift deed annually or file any income tax returns etc?

I would rather suggest to have this shown as income & file her returns. It is always good to have the returns filed, might come in handy in unexpected ways. I am no expert though, let's wait to hear from the experts here.

[carboy]

Originally Posted by Engine_Roars

I would rather suggest to have this shown as income & file her returns.

How can she show it as income? Income from where?

[sukhoi]

Originally Posted by carboy

I think gifts between siblings don't need to pay gift tax. But what do we need to do to make sure no tax issues happen?

To best of my knowledge too, the above is correct. Gifting between siblings is exempt from tax.

Originally Posted by carboy

How can she show it as income? Income from where?

This would not be shown as income but there is a section for disclosing gifts, I think under Exempt Income. Use that to declare this income.

Originally Posted by Engine_Roars

I would rather suggest to have this shown as income & file her returns. It is always good to have the returns filed, might come in handy in unexpected ways. I am no expert though, let's wait to hear from the experts here.

Not an expert, but I would second the recommendation to file income tax returns, purely to maintain record of the same. In future if she invests this money and earns income from it, that might be taxable and previous returns would establish the source of this monies as gifts from her brother, received regularly. There could be other scenarios also wherein it may come in handy.

Regards,
S

[ajmat]

Originally Posted by carboy

I think gifts between siblings don't need to pay gift tax. But what do we need to do to make sure no tax issues happen?

Correct, there will be no gift tax! However do declare the Gift in your tax filings.

[shipnil]

Tax filing experts, I have query on ITR-2. I am trying to include short term and long term capital gains on Debt MF schemes. While equity CG was quite straightforward, I am unable to figure out the schedule and section in ITR-2 for debt STCG and debt LTCG.

Could any one of you guide me?

[blorebuddy]

Originally Posted by shipnil

I am unable to figure out the schedule and section in ITR-2 for debt STCG and debt LTCG.

Could any one of you guide me?

In the schedule capital gains, select "From sale of assets other than all the above listed items". Enter the details under this.

[shipnil]

Originally Posted by blorebuddy

In the schedule capital gains, select "From sale of assets other than all the above listed items". Enter the details under this.

This is for LTCG or STCG? I belive there should be two different places since the tax rates are different

[shipnil]

Originally Posted by blorebuddy

In the schedule capital gains, select "From sale of assets other than all the above listed items". Enter the details under this.

Originally Posted by shipnil

This is for LTCG or STCG? I belive there should be two different places since the tax rates are different

It has both. You can fill in the STCG and LTCG values for debt in two different sections. Thanks blorebuddy!

[Pancham]

Guys I need some clarity on STCG on sale of shares here. I have a small STCG of around 30K. My understanding is that there will be a flat 15% tax on this amount right?

However, in the schedule "Income chargeable to tax at special rates" - the "Taxable Income after adjusting for min chargeable to tax" and "Tax thereon" is showing ZERO.

Can anyone help me understand why there is no tax on STCG?

[binand]

Originally Posted by Pancham

I have a small STCG of around 30K.

However, in the schedule "Income chargeable to tax at special rates" - the "Taxable Income after adjusting for min chargeable to tax" and "Tax thereon" is showing ZERO.

Can anyone help me understand why there is no tax on STCG?

1. You entered your STCG under the wrong head (it should be under section 111A).

2. You have current year or brought forward losses that offset all your capital gains.

[WorkingGuru]

Last night I paid Advance Tax for my partnership firm through online payment, and it generated the payment challan as usual. However when I checked today, I found that it's still not reflecting in Form 26AS.

I had filled the form as I usually do, but could there be a problem somewhere? What should I do now?

[concorde24]

Originally Posted by WorkingGuru

Last night I paid Advance Tax for my partnership firm through online payment, and it generated the payment challan as usual. However when I checked today, I found that it's still not reflecting in Form 26AS.

I had filled the form as I usually do, but could there be a problem somewhere? What should I do now?

For me, every time it takes 2-3 days from Challan payment to updates in Form 26AS. Please wait until early next week.