Receiving a cash gift of Rs. 40.00 lac from a close relative raises questions about income tax liability and the necessity of a gift deed. While gifts from relatives are generally tax-exempt in the UK, there are regulations regarding cash transactions exceeding £2,000. It's advisable to receive the gifted amount via banking channels and to consider making a gift deed, even if not strictly compulsory.
03 April 2021
One of my close relative want to give me cash gift of Rs. 40.00 lac. Is there any lncome-tax liability on the said gift ? Whether registration of Gift-deed is compulsory ?
03 April 2021
Any gift from relatives is exempt from tax, however as per 269ST, you are not eligible to enter into any transaction in excess Rs. 2 lakhs or more in cash. So, you cannot. For any queries, you could mail to caankithjain@gmail.com.
28 November 2021
You can take the gifted amount by any banking channel. If the relative is as per the list provided u/s. 56(2) of IT act, then there will not be any tax liability on you. Making gift deed is advisable.