Can my granpa gift me money by demand draft

ITR 786 views 2 replies

erdeep

engineer

309 Points Joined August 2014

Respected experts ,

My grand father wants to gift me Rs 1 laks by Demand draft on my birthday . He is a farmer . Can he do that ? He dont want to make payment through his bank account because their children will creat a issue. Thats why he is choosing DD over account to account or by cheque payment so that it will not be in his passbook of account history to whom he invested that money .

Accepting that amount by DD will be allowed for me ? i will make a gift deed for future purpose so that it will creat any problem for me .

Replies (2)

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Hello, You can received money from your grandfather & it will not taxable.

Any amount received from specified relatives is totally tax free in the hands of recipient. So if a relative gives you gift in form of cash/cheque or in consideration, you will not have to pay any tax on the amount received.

Following is the list of relations which are considered as “relatives” for this

Your spouse
Your brother or sister
Brother or sister of your spouse
Brother or sister of either of your parents
Any of your lineal ascendants or descendants
Any lineal ascendant or descendant of your spouse
Spouse of the persons referred in above points

Miss Rinkal

Student

1309 Points Joined January 2009

@ erdeep:

There is no tax implications on whether the gift is recd in cash/ cheque /dd or any other mode. Only thing the said gift should be recdfrom a relative as defined for the purpose of sec 56(2)(vii). Also make a gift deed at the earliest. That will be a sufficient proof for tax purpose and will be useful in event of family issues as well