I am a senior citizen. My son transfers around Rs 40,000/month in order to enable us (my wife and I) to meet our expenses. My son and I file Income tax returns regularly. Am I required to indicate the sum received from my son in my tax returns under exempt income column or can I ignore it?
Any sum of money received from relatives is exempt from income tax. However, all such receipt should be fairly reported in the Income Tax Return form. Hence, sum received by you from your son should be disclosed in the income tax return form under the head exempted income (EI).
I am a retired executive. Do I have to inform the tax department if I purchase a flat for Rs 30 lakh from my own savings and retirement benefits?
At the time of purchase of the property, you shall not be required to inform the tax department about the incidence of purchase. It is the responsibility of the registrar to report the purchase/sale of immovable property by any person for an amount exceeding Rs 30 lakh. Further, if your total income exceeds Rs 50 lakh in a financial year you shall be required to furnish a statement of assets and liabilities in the Income Tax Return wherein you shall be required to give the details of your property.
Chirag Nangia, Director, Nangia Advisors (Andersen Global)
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