GIFT

Save Share

This query is : Resolved

Quick Summary

A gift of Rs 10 Lakh transferred to a brother via banking channels in FY 2019-20 is generally not taxable in India. The bank statement serves as the primary legal record. If tax authorities question the nature of the transaction, a confirmation letter stating it was a gift, alongside the bank statement, should suffice to prove it wasn't a loan.

rishabh bhatia

rishabh bhatia (Querist)
Follow

27 July 2020 Dear Sir,
I paid Rs 10 Lakh money to my brother in FY 2019-20 as a gift whether it is taxable to my brother or not,
What legal record is to be maintained by me if no gift deed is made by us till date.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

27 July 2020 It's not taxable if payment made through banking channel. Bank statement will be legal record.

rishabh bhatia

rishabh bhatia (Querist)
Follow

28 July 2020 What if AO said to us that the above payment is not gift and it is a loan, now in that case what document i provide to AO that it is a gift

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 July 2020 Confirmation letter that it's a gift is enough.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now