Gift to mother-in-law

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)
Follow

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)
Follow

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.

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