INCOME TAX28 Sept 2026
₹85.30 lakh cash gifts from relatives: ITAT says donors’ low income alone isn’t enough to reject genuine gifts | Mint
The Chennai ITAT has deleted an ₹85.30 lakh tax addition on cash gifts from five relatives. It said a donor's low income alone cannot make a genuine gift taxable, since the taxpayer showed gift deeds, income-tax returns and financial statements, and all five donors confirmed the gifts. If you receive large family gifts, keep this paperwork ready.
Key Statutory Highlights
- The Chennai ITAT deleted a ₹85.30 lakh addition made under section 68 of the Income-tax Act on cash gifts received from five relatives.
- The taxpayer produced gift deeds, income-tax returns and financial statements of the donors, and all five donors confirmed the gifts before the tax department.
- The tribunal held that the initial burden under section 68 was discharged, so the donors' low income alone was not enough to reject the gifts.
Actionable Advice for Taxpayers / Founders:If you receive a large cash gift from a relative, keep the gift deed, the donor's income-tax return and financial statements safely. Also check with your CA before assuming the matter is fully settled, because the tax officer may still question the donor's capacity to give.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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