Cash Gift to Minor

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This query is : Resolved

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Receiving cash gifts for a minor, such as a 3-year-old daughter, totalling around £29,000 is permissible. You can deposit this money into her bank account the following day. While no specific proof is generally required for the gift itself, any income generated from this sum will be included in your income and is taxable. However, the cash gift itself does not need to be declared in your Income Tax Return (ITR) unless it exceeds £50,000.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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28 August 2024 Hi,
My daughter of 3 years (Minor) on her birthday has received cash gifts ranging from Rs. 2,100 to Rs. 5,100, totalling to approx. Rs. 29,000.
1. Can I deposit the same amount in her bank account tomorrow, means the day next to her birthday ?
2. Any proofs to maintain for the same or any document ?
3. Income Tax implication for the same ?
4. Any other thing to keep in mind ?

Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2024 1 yes.
2 Proof not required.
3 It will be included in your income and taxable.
4 No other things.

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Ankur Aggarwal

Ankur Aggarwal (Querist)
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29 August 2024 Hello Sir,

Even if the amount is below 50K, i.e. 29,000 in this case, will it be taxable in hands of parent?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2024 Not taxable below 50k.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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02 September 2024 Hello,

Is this cash gift need to be shown in parent's ITR, as due to being a minor and income of minor is being taxed in hands of parent?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 September 2024 No need to show cash gift in ITR.
Income only has to be shown.

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