Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

cash gift to my married daughter

11 December 2018

I am an income tax assessee. I want to gift herRs.10,00,000.

Please clarify whether this amount will attract gift tax ?

If so, at which end I. e.myself or
my daughter?

Please also clarify by which mode I have to transfer?

R.Narayanasamy

Reply
Follow
Share

7 Replies

vishal (na) (175 Points)
Replied 11 December 2018

cash gift to daughter is not taxable. use banking channel for transfer of cash.

Upgrade to CAclubindia Pro. Subscribe Now!

Charan Raju (Manager) (132 Points)
Replied 11 December 2018

Hey,

There will not be any tax applicable in this transaction

Bharat Bohra (154 Points)
Replied 11 December 2018

Not taxable
under 2 situations:-
1. any Gift from received from relative is exempt
2. Gift received on the occasion of marriage from any person is exempt

hence since it is received from father (i.e, relative ) is exempt

1 Like

CA Nikhil Arora (Chartered Accountant) (91 Points)
Replied 11 December 2018

Although cash gift is exempt on the occasion of marriage or to the relative. But it will attract the penalty u/s 269ST of 100 % of the amount reced in cash in excess of Rs. 2lakhs.

Also keep in mind the provisions of Sec 269ST read with section 269DA while making the gift in cash.

rama krishnan (12244 Points)
Replied 11 December 2018

I agree with Mr. nikhil

Upgrade to CAclubindia Pro. Subscribe Now!

dkchandak391@gmail.com (11 Points)
Replied 12 December 2018

exempt u/s 56(2)(x) realative exempt

CA. Mayur M. Mamtora (Chartered Accountant) (162 Points)
Replied 12 December 2018

Gift to Relative is exempt under Income Tax

Relative includes Daughter

Hence in your case, gift to your daughter will be exempt. However it is advisable to gift using Banking Channel i.e. Account Payee Cheque or Account Payee Bank Draft or ECS only. Also you should make a Gift Deed specifically declaring that this gift is out of natural love and affection and that it is irrevocable and that you reserve no claim on said gifted amount.

Should not gift in cash as the provisions of S. 269ST will be attracted for amount in excess of Rs. 2,00,000/- and could attract penalty to receiver.