Finance, Forex and Investments

I am a Italian national girl going to marry with an Indian guy..?

I am a 23 years old Italian national girl going to marry with an Indian guy in 2 years. My both parents are Italian national. For this marriage my parents are willing to give me and my future husband an amount of money by transfering it to my future husband's bank account. Stated that if "gifts received by an individual exceeds Rs. 50,000, then the entire amount is taxable as income", and stated that the exeptions to this law are for gifts: 1. Received from relatives (see List of Relatives), 2. Received on the occasion of the marriage, 3. Received by will or inheritance, 4. Received from local authority, 5. Received from any foundation, university or educational institution, hospital or medical institution, or any trust or institution referred to in section 10(23C), and 6. Received from a charitable institution registered under section 12AA. List of Relatives. Gifts from following relatives are not considered income: *spouse, *brother or sister of individual, spouse or parents (of individual or spouse), and *any linear ascendant or descendant of the individual or spouse. what is the procedure they have to undertake not to have the whole amount taxed? Will a document that states they are transfering the amount to their daughter's future husband's bank account in view of their wedding be enough? Or shall they procede by presenting all the documentation for a will gift?

Public Comments

1. clear all doubts visit this website http://taxlogic.blogspot.com
2. Gifts in Cash or Kind, of any amount, from specified relatives are Tax-Exempt Gifts in Kind (not Cash), of any amount, from any person either relative or stranger are Tax-Exempt. Any gift received from any person on the occasion of the marriage of the gift's recipient would not be liable to income tax at all. There is no monetary limit attached to this exemption, which is provided by the proviso to Section 56(2)(vi A Gift Deed has to be made. You can take advantage of the above clauses. Stamp Duty and Registration charges will have to be borne.