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Ask Mint | Gifts among family members not taxed

Ask Mint | Gifts among family members not taxed
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First Published: Wed, Mar 31 2010. 09 01 PM IST

Updated: Wed, Mar 31 2010. 09 01 PM IST
I have received an amount of Rs15 lakh from Life Insurance Corp of India (LIC) as maturity amount of an investment made by my paternal uncle in my name. How should I show the same in my income-tax return for the current year? What will happen to the tax liability of my uncle? I know the maturity amount from LIC is exempt from tax u/s 10 of the Income-tax Act, 1961. In my case it is not invested by me, but it was invested by my uncle. So, will it be treated as indirect gift?
--Subhash Arora
The money received from LIC is exempt under section 10(10D) of the Income-tax Act. This amount can be credited in the capital accounts as “insurance policy maturity proceeds” and can be shown under exempt income under section 10(10D). Even the premiums paid by your paternal uncle are not taxable in your hands as it was exempt on a gift from relative.
I live in a house that has been gifted by my father. Will this transaction be taxed?
--Sumeet Bajoria
No tax is charged on gifts among immediate family members. However, you will have to pay registration fees to have the property registered in your name, and will have to pay the stamp duty.
I pay the equated monthly instalments (EMI) for a home loan taken by my father. The property and the loan are in my father’s name. Will I get tax exemption on the EMIs paid by me?
--Manohar
You are not entitled to claim tax deduction in respect of EMI paid by you because you are not a co-owner of the property.
I bought a unit-linked insurance plan (Ulip) from HDFC in my wife’s name and I want to claim deduction under section 80C as my wife is a homemaker and does not have any source of income, thus does not file any return. I have paid the cheque from my bank account. Can I claim the deduction?
--Shalabh Singh
As per the provisions of section 80C, you can pay the premium on the Ulip of your spouse and claim deduction against your income.
Harsh Roongta is the CEO of Apnapaisa.com
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First Published: Wed, Mar 31 2010. 09 01 PM IST
More Topics: Personal finance | Ask Mint | Harsh Roongta | Tax | LIC |