Gift to mother-in-law

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2012 Can a daughter-in-law give a gift of Rs.1 lakh to her mother-in-law ? If yes, will mother-in-law have to pay ant tax on this gift ? Or, will clubbing of income apply to daughter-in-law on the income generated by mother-in-law from assets purchased from the gift amount ?
Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

31 December 2012 The Gift will be tax free as mother in law, being the mother of the spouse is a relative. Income generated from gifted property will be taxed in the hands of the recipient only and not in the hands of the donor.

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2012 Thanks for the reply.

For giving gift to a family member by account payee cheque, is any document required to be prepared ? If yes, what kind of document ? Is it to be prepared on stamp paper ? If yes, what value of stamp paper should be used ? Is it to be notorised or registered ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

31 December 2012 A Gift Deed on Non Judicial Stamp Paper of Rs. 100/- can be made and kept. There is no need to get it Registered or Notorised.

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