Gift tax

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Receiving a gift of 30 lacs rupees from your real sister via bank cheque is generally tax-free in India, as gifts from specified relatives are exempt under Section 56(2)(x) of the Income Tax Act. While no tax is applicable to either party, it is advisable to create a gift deed. This document serves as crucial evidence, especially with the move towards faceless assessments, ensuring the transaction is properly documented and recognised during any future tax scrutiny.

Rajesh Chopra

Rajesh Chopra (Querist)
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28 September 2020 my sister wants to give me rupees 30 lacs as gift via bank cheque. please advise if any tax will be applicable to either my sister or to me. am I required to execute any document.

this is a case of gift from my real sister

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)
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29 September 2020 As per section 56(2)(x) gift from relative is exempt and relative includes sister. So, no tax will be applicable to both you and your sister

CA PARTH SHAH

CA PARTH SHAH (Expert)
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12 October 2020 Kindly make a Gift deed as now the assessments will be faceless and only a proper documentary evidence will be considered as valid document during assessment

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