As part of tax planning I want to gift to my Mother and Mother inlaw a sumof rs 20 lacs each so that the interest on this amount can go towards their living expenses. What documentation is needed for this. if any. Any other precautions I should take?
Thanks in adv ance for any replies.
vish
I think need not to be take any doucmentantion because u r paying gift in the form my cash or by depositing it into the bank it is a movable proparty. Gift of movable proparty may or may not be registered. However u shold prove the source for the gift paid amount else u r liable to pay income tax as un recognaised income. It is better to u consult any Chartered accountants near or close to u for better clarification and suggestion.
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