Cash gift to relative

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2012 Dear sir/madam

Is it permissible under law to give cash gift of more than Rs 20 thousands to a relative ?
If my wife gifts money to my father than will the income from this gift be clubbed with my wife's income ?

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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28 September 2012 Gift to relative is totally exempted irrespective of the amount gifted. Further, Gift given by your wife to your father is not clubbed.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2012 Thanks Mr. Sunil Kr. for your reply.

Is it permissible under law to give cash gift of above Rs. 20 thousands.
Is a gift deed necessary in the above case ?
Is a gift deed on plain paper sufficient in the above case ?

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2012 Any reply from respected experts ??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 October 2012 1. There is no restriction on making gifts, irrespective of the amount and the mode (cheque or cash).
However, your wife should be able to substantiate the source of the gift.

2. It is better to prepare a gift deed to avoid any problems.
Prepare a gift deed on a stamp paper of Rs. 10.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2012 Thanks a lot for your reply sir.

My wife is a salaried employee and tax payee.
Sir can a gift deed be made now for the amount gifted in AY 2011-12 ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 October 2012 It is difficult to make a gift deed on a stamp paper in a back date.