'NRI's ₹3cr gift to mom non-taxable'
The Free Press Journal|December 11, 2024
In a landmark decision, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a Rs3 crore gift from a Hong Kong-based hedge fund operator to his mother in Mumbai is genuine and exempt from taxation.
Dharmesh Thakkar

The case revolved around the substantial sum sent as a gift by the non-resident Indian (NRI) during the 2010-11 fiscal. The Income Tax (I-T) Department had classified the amount as "unexplained cash credit" under section 68 of the I-T Act, attempting to levy a hefty 60% tax rate (plus cess and surcharge).

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