Gift from mother to son

Agreement deeds 951 views 4 replies

gajendra

Student Others

26 Points Posted on 24 August 2013

Hello All,

I had purchased some real-estate property a long time ago. As I was out of the country at that time, I had my mother purchase it in her name.

Now we have decided to sell the property. Its obvious that the purchaser will pay my mother in the form of a DD.

Now the question is how to get that money from my mother to me? Should we go for a gift deed? What other paper work, if any is needed?

I am planning to keep the money in bank(s) on term/fixed deposits. Do banks require any additional paper work?

Appreciate the answers.

-Chandra

Replies (4)

CA Parul Saxena

8527 Points Posted on 24 August 2013

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

Mihir

Wealth Manager

5293 Points Posted on 27 August 2013

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

gajendra

Student Others

26 Points Posted on 29 August 2013

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?

Mihir

Wealth Manager

5293 Points Posted on 29 August 2013

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.