Tax on gift (cash) to relative or cash loan

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Bikas (Querist)
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24 June 2016 Good morning everyone, my query is what are the consequences under income tax act if a father gives cash of Rs. 10 lacs to his major son as gift or as unsecured loan?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 June 2016 No tax payable on gift in cash of Rs. 10 lacs by father. Loan can't be given in cash exceeding Rs. 20,000.

Rupesh Jain

Rupesh Jain (Expert)
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24 June 2016 for gift there is no limit but for safer side you have to give gift through banking system.

and for loan you have to follow us/ 269SS and 269T under this you cannot make/take/repaid exceeds Rs. 20000/- in a year.

Bikas

Bikas (Querist)
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25 June 2016 thank u to all

Bikas

Bikas (Querist)
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25 June 2016 but in India, generally a father gives loan or gift in cash to his children for starting any business or for purchasing any vehicle. So in that case or else anywhere is there any relief?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2016 Gift can be given in cash, loan has to be given through cheque only. Treat all payment from father as gift. Repayment of money from son treat it as gift from son.

Bikas

Bikas (Querist)
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25 June 2016 is gift deed required?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2016 Yes it can be in a plain paper.

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