Cheques issued in favour of car agency as gift

Hi, My mother has issued cheques and given them to my wife for purchase of car. Those cheques will be in favour of a car agency towards payments for the car purchase. The car will be registered in the name of my wife. So the car would be paid for by my mother but the car will be registered in my wife's name. Whether it will be exempted from gift tax? My mother is a tax paying individual. Please reply. Thanks.

Replies (3)

purchase car in mother` name and mother 

will gift a car to your wife 

Car agency said that it can be done the way I mentioned. Please guide.
One more query. Whether my wife, who is a non tax paying individual ( as no income ) can deposit my mother's cheques (total Rs. 10 lacs) in her bank account and pay for the car herself? If yes, whether she needs to file IT return? What would be the tax implications on both my wife and mother? Thanks

for ur mother u have to declare source of income of 1000000/-

if IT return filed fine your mother will gift amount to your 

wife through cheque and she will purchase the car

just prepare a gift deed and register it and no tax liability on

your wife since it is gift and it is not taxable but dont forget

to filed return othser wise income tax notice will come for 

purchase of car 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details