Gift by relative

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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.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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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 ?

CA Ankith Jain

CA Ankith Jain (Expert)
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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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.

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