student cpt
93 Points
Joined August 2012
question in tribune--What is the maximum amount of cash one can gift to his/her close relatives (say father, mother, son, and daughter) during the financial year, and is any gift tax applicable? How many times can one give such a gift during one's lifetime and is it necessary to prepare a gift deed?
— Swarup
answer in tribune--There is no limit on the amount of cash gifts (through normal banking channels) that one can give to one's close relatives. Of course, the gift must be legal and if required the donor has to prove the source of funds. In cases of gifts to close relatives, the entire amount is taxfree, both for the donor as well as for the recipient. Also, there is no limit as such on the number of times such gifts can be given. While preparing a gift deed is not necessary, having an affidavit that puts down the gift transaction in writing will be helpful.