New Delhi, Nov. 7 -- Receiving a large gift from a family member such as your father, mother, grandmother, or grandfather can invite tax scrutiny, particularly when there is no formal documentation or clear banking transaction trail to establish the gift records.

Still, a recent Income Tax Appellate Tribunal (ITAT) ruling from Jaipur has categorically clarified that the absence of a gift deed or a clearly defined banking transaction does not automatically render a family gift unexplained income. What matters is the fairness of the source, the intention of the gifting parties, the relationship with the receiver and the integrity of the documents.

Subsequently, the tribunal deleted a tax addition of Rs.24,06,121 that a contractor had rece...