Tax liability on gift amount given to blood relation

This query is : Resolved

Quick Summary

Gifting a substantial amount, such as £50 lakh, to your sons as a financial gift is entirely tax-free for both the donor and the recipients in the UK. While a formal gift deed on stamp paper is not legally mandatory for these transactions between blood relatives, it is highly recommended. Preparing a gift deed, even on plain paper, serves as important documentation to confirm the genuine nature of the gift, especially for larger sums.

SHARMA

SHARMA (Querist)
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11 November 2025 Sir,
Whether transfer Rs 50 lacs to my two sons (50 lacs each son) through RTGS or cheque as a gift during a financial year is totally tax free for donor and donee?

2. If, their is any boundation to prepare gift deed on stamp paper duly notirrised?

Thanks sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 November 2025 1. Not taxable to either of you.
2. No; but advisable to prepare on stamp paper as confirmation/declaration.

SHARMA

SHARMA (Querist)
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11 November 2025 Thanks sir.
I am thankful to you for your quick response and valuable advices.
Highly obliged sir.
🙏

CA. Ankit Vijaywargiya

CA. Ankit Vijaywargiya (Expert)
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11 November 2025 Since both sons are receiving ₹50 lakhs each from their father (a relative), the transaction is fully exempt from tax in their hands, irrespective of the amount or mode (bank transfer, cheque, etc.) and Gift deed is not compulsory but recommendatory in order to prove genuineness of transaction.

SHARMA

SHARMA (Querist)
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11 November 2025 Thanks for your valuable guidance and advise.
🙏

CA Kedar Sakhardande

CA Kedar Sakhardande (Expert)
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18 November 2025 Gift deed can be on a simple piece of paper stamp paper not warranted per law.

But as suggested by experts since the amount is high advisable to do so

SHARMA

SHARMA (Querist)
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18 November 2025 Thanks sir for your valuable advise and guidance.

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