Gift from mother to son

Your mother can gift that money to you.......

Capital gain tax will arise out of sale of property. She will be liable to file ITR and pay tax. 

Originally posted by : Mihir
	Capital gain tax will arise out of sale of property. She will be liable to file ITR and pay tax.

Thanks for the info.  I'll get my mother to file her tax returns.  Now the question is, she paid me by means of a check (cheque).  Should this be accompanied by a gift deed or not?

Should that be notarized?

Not only filing returns, she will have to pay long term capital gains on sale of property. If you don't want to pay any tax, then either invest in bonds within 6 months or buy another property within 2 years. In both the cases, first the money is to be deposited in capital gain deposit account. 

If the amount of gift is small, then a simple affidavit will do, and if the amount is large, then prepare a gift deed duly stamped and registered.