gift to parents

This query is : Open

Share Report Follow Query Ask a Query

pratyush chauhan

pratyush chauhan (Querist)
Follow

08 December 2009 how to give cash gift to parents which is tax exempted.
please tell.

Sunil

Sunil (Expert)
Follow

08 December 2009 Gift to your parents by cash (cheque) or property is exempted as parents as you are the lineal descendant of the parent(s). You only have to make an affidavit of your relation with the receiver of the gift for on the spot verification by the AO if called upon.

Income your parent(s) earn from this gift will not be taxed in your hands.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
Follow

08 December 2009 Make gift deed at the time of taken or given gift.

pratyush chauhan

pratyush chauhan (Querist)
Follow

08 December 2009 thanx Mr sunil and Mr C ajmera for solution. but i want to know this type of gift can also be given to father who is already earning by pension and paying tax.
or what is the limit of this type f cash gift to mother? or for this hav to ask deduction at the sourse. if u can explain the general procedur as i m a central govt employee.
regards

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
Follow

08 December 2009 You can give Gifts to your father and mother by making Gift Deeds; even though either of them is earning.

There is no limit to give cash gift.

But care should be taken to prove the source of cash i.e. you should have sufficient proof readily available that this much cash you were possessing as owner.

It is better that soon after gift is made in cash; the same is deposited into the bank account of donee.

TDS are not applicable on Gifts. Just give the money to your parents whatever your desire.

I appreciate you for making gifts to your parents.

CA Rakhecha
Surat

pratyush chauhan

pratyush chauhan (Querist)
Follow

12 December 2009 hi
thanks Mr surendra kumar Akhecha.
one more que that if i provide the proof before dec so can i file return or the income tax which is already beaing cut till now.
regards

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