Gift by sister

This query is : Resolved

P.C. Joshi (Querist)
Follow

16 June 2016 Dear Friends,

If a older sister gives cash gift of Rs 7.50 lacs to her younger sister.

(1) Is there any legal compliance required?
(2) Is it taxable or tax free both in the for donee and donor.
(3) Is any gift deed has to be made for this?
(4) Is it necessary that the gift as above should be given on marraige and any special occasions or it can be given any time?

Prompt and considered views are solicited from the members.

Thanks

P.C. Joshi

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

16 June 2016 01.sister is included in the definition of RELATIVE, so no tax as such u/s 56(2)(vii)
02. No tax for donor as well as donee
03. Gift deed is a registerable document and hence attract stamp duty at prescribed rate. There is, therefore, growing tendency to give a letter of gift
04. No need to give such gift on some occasion. Even if it is given on some occasion, sec 56(2)(vii) is not hit
05. Additional risk could be.......Assessing Officer may ask for "explanation" of cash balance......to donor.

P.C. Joshi

P.C. Joshi (Querist)
Follow

16 June 2016 Thank you sir.

Just two doubts
(1) If the gift is given by bank transfer and the donor has sufficient legitimate income. Is it necessary that the income of donor must be reflected in the return filed/to be filed by him.

(2) If a gift deed is made on plain paper, is it sufficient. As per my knowledge, registration of gift dded for immovable properties is not compulsory.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

16 June 2016 01. If it is given by bank transfer, normally no questions asked. But under the DATA capturing system of revenue authorities, if the said transaction comes to light, you should be in a position to justify the quantum
Between relatives, stamp duty is NOT required

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ASHOK B GONDKAR

rana andcompany

Raj Jaggi

SHRI HARIRAO

Raviraj ponkshe

Subscribe Now

Gift by sister

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

Senior Executive

GST CONSULTANT

Manager- Finance and Compliance

GST CONSULTANCY

Accountant