Want to gift to my brother

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the accounting treatment of a large gift to a brother. The consensus is that gifting £300,000 to a brother is not an expenditure but a reduction in your personal capital. Therefore, it should be recorded in your capital account on the balance sheet. While gifts between relatives are generally not taxed in the UK, it's advisable to keep a gift deed for documentation purposes.

Ashim kr Ray

Ashim kr Ray (Querist)

09 April 2020 Sir,

I want to gift 3lac to my brother , here i want to know where it will effect in Income tax whether in Balance sheet or capital account and under what head.

Please suggest

RAJA P M

RAJA P M (Expert)

10 April 2020 It's Your capital account of your balance sheet...

Message likes : 1 times

Ashim kr Ray

Ashim kr Ray (Querist)

10 April 2020 Sir
Not clear wat you said can repeat onces.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 April 2020 In income tax: no taxation on Gift to relatives.
If you are having Capital of Rs 5 Lac and out of it making a gift to your brother of 3 Lac your capital will reduce to 2.00 Lac,

Message likes : 1 times

RAJA P M

RAJA P M (Expert)

10 April 2020 It's not a expenditure. You give Your money to Your brother. Then it will less Your capital account (from. Your pocket). So it will be accountable in Your capital account and the capital account reducing as per Mr CA PARAS BAFNA...

Message likes : 1 times

Ashim kr Ray

Ashim kr Ray (Querist)

10 April 2020 Thanking you all Sir.

Sir whether gift deed is required to be made in this case.