03 May 2012
dear all, plz help me wat would be tax treatment if a salaried person paying tax and no other income, receives Rs. 700000 from his father. this money is received by his father as a share from sale of very old property of their forefather. whether any gift deed to be made? wat would be tax consequences in the hands of the son or whether not to transfer and keep with father only??
please guide me on this matter and reply me soon thank u in advance
03 May 2012
The Son can accept Rs. 700000 as a gift from Father. If it is in cash, for a safer side make out a gift deed. However, if you pay by cheque, then there is no need for Gift Deed. Gift from any relative (as mentioned in the Section - It includes Father) is exempt from tax in the hands of the receiver. So no tax implication for the gifts in the hands of Son.
04 May 2012
Father was in receipt of share from sale of ancestral property, it will be HUF fund in hands of Father. If it is not gifted, income from same will be assessed as HUF income, if it is gifted to your client , under the circumstances income from this fund will be in addition to salary and will attract tax in hand of your client. Plan in such a way that it will be HUF Fund, which will save I. Tax.
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