Amount refund by seller be considered a taxable transaction?

854 votes

Gift from husband to wife or father to daughter is not 100% exempted from levy of income tax act but only to a certain extent. Here lets presume that the gift you have received from your husband is not leviable to income tax act. In that case as the source of the income in itself is not taxable then when the same income is refunded back to you will not become taxable.

Advocate Deepak Thackur LawRato