Cash gift during marriage & income Tax Applucability


Cash gift during marriage & income Tax Applucability

Here is an interesting case by ITAT, Chennai on the applicability of income tax in case of receipt of cash gift during marriage. The case before ITAT Chennai was ad under:

Smt.Porkodi (/ITA No.378/Chny/2022)

Let us have a short overview of the case:


  1. The AO rejected the gift received from the  brothers of the assessee amounting to Rs.4.5 lakhs on the occasion of marriage of her daughter on the ground that the donor has not confirmed the gift. This was then deposited during the demonetisation period into the bank account. The assessee had filed the list of donors too.
  1. The AO confirmed the addition towards cash deposits including the wedding gift during demonetization period u/s.69A of the Act.

ITAT Chennai held as below:

  1. The assessee has filed Sworn Affidavit claiming giving marriage gift on 19.05.2016, but the stamp papers has been purchased on 13.07.2022.
  1. However, it is customary in India that during marriages brothers will give some money to their sisters depending upon their social status and economic condition.
  1. Therefore, the claim of the assessee that she has received marriage gift from her brothers cannot be totally ruled out.
  1. Therefore, considering the facts and also custom prevailing in India, we are of the considered view that a reasonable amount of marriage gift claimed by the assessee, can be allowed.