For instance gift received from your aunt/uncle’s son or daughter etc., is taxable as they are not considered as a relative. The legislations have been penned so as to levy tax even if gifts are provided by an employer to employees.
Gifts received up to ₹50,000 are completely tax free but if this amount is breached, the whole amount of gifts become taxable. For an instance, if you have received ₹55,000 worth of gifts during a financial year, complete amount of ₹55,000 will be taxable under the head ‘ income from other sources.
Can my aunt gift me money?
You may not give this money to your aunt or you will be subject to gift tax on the amount that exceeds $14,000. This same rule applies for educational gifts (for example, if your friend or brother was attending college).
What do I Call my mother’s aunt?
You call your mother’s aunt your great aunt. When referring to the aunt, her name is usually simply preceded by the title, as in “Aunt Mary.” Within some families, the variation “grand aunt” is used instead of “great aunt.”
What should I do with my mother’s money?
The reason for explaining this is that it might affect your plan to use your mother’s money to buy yourself a home. If you did have siblings, your home might have to be sold on your mother’s death to ensure that your siblings’ families received their share of your mother’s estate.
What should I do with my mother’s power of attorney?
But whatever your family situation, the fact that you have power of attorney does not mean you can help yourself to your mother’s money. So, if you were to use the proceeds of the sale of her house to buy a new property, you should reflect her contribution to the purchase by putting the property in your joint names.
Can a parent spend their wealth on their siblings?
But, if you are the one in town and all the siblings have left….and your parent cannot spend their wealth in their lifetime, get in there and make some rules. No finger pointing. This is happening in my friends in-laws family. My friend goes to the doctors, shopping, and gives this individual good company and family where there is none.
