Gift to Married Daughter

Tax queries 4212 views 11 replies

My Client being An Individual wants to gift of Rs 500000/  by way of cash to his Daughter who recently married  before 6 Months.

whether this gift is exempted as specified u/s 56 of i.T. Act under the meaning  of  terms relatives.

Regards.

Replies (11)

yes

Said gift will be exempted.

regards,

ratan

Yes, relative includes Lineal Descendant. But beware you are making gifts in cash. That would amount to srcutiny as to the source of Rs. 5lacs. Read the provisions sections 68 to 69C of unexplained expenditure and cash credits.

Yes the gift will be exempted.

Better advise your client to deposit the amount in his Bank account and then gift by way of a/c payee cheque instead of Cash. Also he can deposit and divide the amt in his wife's a/c, Major Son's a/c and then they can gift the same to your clients daughter.

Agree with Ayushraj..................................

 

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Father is covered by sec 2(41) in the defination of relative. so gift from relative on any occassion is exempt in the hands of the reciever.

Yes, it will be exempted under section 56, but gift in cash will attract the attentions of IT officers..

Originally posted by : Ayushraj

Yes the gift will be exempted.

Better advise your client to deposit the amount in his Bank account and then gift by way of a/c payee cheque instead of Cash. Also he can deposit and divide the amt in his wife's a/c, Major Son's a/c and then they can gift the same to your clients daughter.

Agree with thizz

yes

exempted,
 

But you should better to pay through a/c payee cheque

Yes gifts recd. by an individual from the specified relatives are exempted from I tax.

Although as a proper practise It should be through chq. and a formal gift deed should also be prepared.


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