My daughter in law has bought a flat for herself. I have given 8 Lacs Rs as gift to my daughter in law. The fat is rented and she is getting 10,000 Rs rent. I have signed a letter saying "Its a gift from my free will". I am certain this is exempt under provision 56. Do I need to do anything else? I am hoping she doesn't need to pay any tax on the gift.
In addition, my daughter in law has borrowed 1 Lakh from her friend who has given a cheque from her business. She was supposed to pay it back before 31st March otherwise, her friend will have to pay TDS on it. Can somebody please explain, what will happen if this is not paid before 31st March and how much TDS her friend will have to pay?
Thanks for your help.
Sanjay
CAclubindia
