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Gift tax treatment

Others 2058 views 7 replies

Hi

If anybody know about ths case, please help me.

"Father, Mother and son in a family, Here father wants to give a cash of Rs.2,00,000/- to son and Rs.5,00,000/- to Mother by way of gift deed. Both mother and son have other sources of income. "

What is the tax treatment, if any clubbing provision is applicable?

 

Thanks

Guptha

Replies (7)

 

First of all this is big amount and father should give it by cheque only …

For son this gift will be exempt…

For mother it will not exempt…. Father can give this amount by loan only…

If an individual makes a gift in cash or by cheque to his spouse and that money is utilized by the spouse for purchase of an asset . The income earned by the spouse from that asset will not be clubbed in the income of the individual.

Hi

thanks for very quick response,

Which section will refer these cases? will be very great helpful for me.

SECTION 64.......

Is it necessary to have a gift deed, or mere intimation or declaration in the income tax return is enough,if in the son's gift case.

and also is there any other tax planning in case of mother.

 

Only declaration is enough… one more alternative is father can gift to sons 5Lac more and than if sons gift this amount to mother than it will exempt… for mother too.. others member views are most welcome..

It is advisable to create a Gift Deed in such case.

Following is the gift deed format:-

 




Confirmation of Gift of money can be on a plain paper by way of a gift deed, there is no necessity of stamp paper.

 

Simple format of deed:





GIFT DEED

KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o ____________________, transfers voluntarily, CASH OF  value of which is Rs._____________ (Rupees_____________ only) to my SON/HUSBAND/SON IN LAW SRI.____________ S/o of Sh._________________ (hereinafter referred to as "the donee") To Hold the same to the donee absolutely forever. I further declare that the said gift has been made by me out of my natural love and affection for the donee and the same has been accepted by the donee.
IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.
Witness:

 

1.
 
DONOR
2.
 
DONEE

 

I, SRI. ______________, the donee hereby accept the gift. 

MODIFY THE FORMAT SUITABLY BY ADDING THE AMOUNT AND CHEQUE/ D D NOS'

 


 

 

Regards,

Devendra Kulkarni



CCI Pro

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