Gift Deed for Gift from Husband to Wife

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This query is : Resolved

Quick Summary

This discussion clarifies whether a Gift Deed is required when a husband, a senior citizen, gifts a Fixed Deposit to his wife, also a senior citizen. The consensus is that a Gift Deed is not strictly necessary, nor does it require registration in this specific scenario. However, the conversation highlights that income clubbing provisions under the Income Tax Act will still apply, regardless of the parties being senior citizens. An alternative suggestion was made to consider the transaction as a loan reversal to avoid clubbing, which was deemed a viable solution.

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Sir,
Husband , a Senior Citizen,gifts Fixed Deposit of Rs. 20 lacs by transfer of Fixed Deposit to Wife who is also a Senior Citizen.
Under the premises kindly advise:
A. Whether Gift Deed is necessary?
B. If so it is required to be Registered?
C. Whether income clubbing provision would be applicable unde Income Tax Act?
Thanks & Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 August 2024 1. Better to make it for any future query.
2. No.
3. Yes.

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Thank You Sir!
As regards clubbing provision, both hUsband and wife are senior citizen that too 80 plus and have more or less same income and tax bracket.

Will clubbing provision still apply?

Thanks & Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 August 2024 Yes, clubbing provision is exclusive of above said conditions.
If income rang is same why to go for such gift?

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Sir,
Point taken. However this Gift has arisen to set right the mistake by bank in renewal of FD. In view of the long association and on request did not press for correction as it would have had adverse impact on the career of concerned officer. That's how Gifts arose to set right the books.

Thanks & Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 August 2024 Here is a point...
If that transaction could be considered as loan, reversing the transaction would be 'non-gift' and the clubbing provision would not apply.

RAJEEV KUMAR MEHTA

RAJEEV KUMAR MEHTA (Querist)
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16 August 2024 Sir,
Yes that would restore the status.

Thank You so much!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 August 2024 You are welcome.........

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