If a Parent gifts certain amount of money in cash to their children , then since it is non taxable:
is it necessary to make Gift Deed and get it registered?
also is it necessary to file return of income (due to a considerable amount) when there is no other source of income?
YES AS PER PLAIN READING OF SECTION 139(1) WHERE THE TOTAL INCOME EXCEEDS THE MAXIMUM AMOUNT NOT CHARGEABLE TO TAX ONE MUST FILE RETURN,THEREFORE THE SECTION SPEAK ABOUT INCOME NOT ABOUT TAXABILITY
2. IT IS BETTER TO HAVE GIFT DEED TO BE ON SAFE SIDE COZ WHEN IT RAIDS ARE CONDUCTED THESE DAYS ,THEY ARE ASKING FOR PROOFS
3. IT IS BETTER TO FILE INCOME TAX RETURN THESE DAYS BANKS ARE NORMALLY PROVIDING LOANS ON THE BASIS OF IT RETURN ONLY
REGARDS
SRIPAL JAIN
| Originally posted by : amit jain | ||
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- when gift is made, and accepted by the children, then where the money is put? coz parents does not have right to have that money with them, does child owe a bank account? if yes then did the amount get deposited to bank/ invested? if yes, then make a simple plain paper deed signed by parent and child and keep in file,
- as the child's income is to be clubbed with parent, the details are already submitted to incometax with parent. |
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Parents can gift cash to their child. But as it considerable amount return must be filed. And gift should be made with a proper gift deed on stamp paper and duly acknowledged by receiver. Registeration of deed is not compulsory.
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