Gift Tax-reg

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Jphanikumar (Querist)
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12 March 2008 If an individual gives cash as gift to his parents, will that reduce his taxable income.
If so how can he prove that he has given cash as gift to his parents to claim deduction from his taxable income, i.e what are all the documents he has to produce to prove the gifting of cash to his parents.

Thanks in advance for your clarification. If you have any supporting case law is highly helpfull

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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13 March 2008 GIFT GIVEN IN CASH TO PARENTS DOES NOT AT ALL REDUCE HIS TAXABLE INCOME THOUGH IT WILL REDUCE HIS CAPITAL.TO PROVE THAT HE HAD GIVEN THE GIFT IN CASH HE SHOULD HAVE ACCOUNTED CASH IN HIS HAND TO PROVE IN FRONT OF ASSESSING OFFICER

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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13 March 2008 Cash as gift does not in any way reduces tax. Further, for proof that gift has been given, you may also draft on Rs.10 stamp paper and get it notified that gift has been made.

CA Praveen Chopra

CA Praveen Chopra (Expert)
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13 March 2008 GOPAL SONIKA IS ABSOLUTELY CORRECT.

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