08 November 2009
I received a sum of Rs.1900000(nineteen lacs) from my father.Actually,my father sold a plot of this sum and gifted it to me.The plot was purchased by my father in 1976.
I,therefore, request you to apprise me of tax liabilities.
08 November 2009
Capital gains tax liability has to be worked out in the case of your father. If there is any tax liability your father has to bear that. As regards the money u received no tax liability arises at the time of gift on account of the amount received. Future tax liability depends on how you utilize the money.
08 November 2009
Agreed with expert. There is no tax liability to you on account of receiving the money as it is a sum without adequate consideration received from your parent. However, since 1/10/2009 receipt of property without adequate consideration other than from a relative is also taxable. The board had issued a press release that in addition to gift deed for property they would want an affidavit from donor affirming the relationship and the fact that property has been gifted. It is basically a check by putting the onus of declaration on oath to the donor rather than donee. Therefore even for a cheque given to you of 19 lakhs you must take the affidavit from your father confirming the facts of relationship etc. Moreover, you will also have to prove your father's ability to give that amount to you. Sale of property if properly accounted for in his tax returns is good enough as a proof.
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