Can grandparents gift money to grandchildren in India?
According to Section 56(2)(vii) of the Income-Tax Act, gifts received from relatives are not taxable . The specified list of relatives includes grandparents and grandchildren as well. Also, neither of you not need to furnish the gift details when filing your tax returns. Any income arising from the gift needs to be clubbed with the parents' incomes. The investments done by grandparents in the name of grandchildren are a gift and not liable to tax . Vineet Agarwal, Partner, KPMG in India, says, "Any income arising from such gifted amount will be taxable in the hands of the grandchild. A relative wants to gift cash to me. What are the income tax implications? The gifts are taxable in the hands of recipient under Section 56(2)(x) but gift from certain specified relatives are outside the scope of this provision Q: My grandmother, 85 wishes to gift me a certain sum of money in cash. Can she gift me in cash? If yes, is there any limit for cash gifts under the income tax or any oth...