Need for gift deed

Others 209 views 6 replies

I am a taxpayer and have plan to purchase a property. My mother has a Fixed Deposit maturing soon where my father is also a joint account holder (1st account holder being my mother and 2nd holder being my father). Upon maturity, the money is set to be transferred to a Savings Account jointly held by my father (1st holder) and my mother (2nd holder). My father/mother wishes to transfer the entire amount upon maturity to my account ( where I am the sole account holder) as a gift to fund the property purchase. Is this kind of a transaction advisable w.r.t. the prevailing taxation rules? I understand that a gift deed is advisable and taxes would be applicable for transactions within family. However, the concern here is that both the accounts (FD and savings) are held jointly by my parents but the FD has my mother as the first account holder whilst the Savings account has my father as the first account holder. Kindly advise.

Replies (6)
take a letter signed by both if value is say less than 10 lacs. it is enough. only for high value proper deed is reqd.
seniors can advice on this

Hi Rajkumar, thanks for your reply!

Yes, it is less than 10 lakhs. So if I understand correctly, there is no need for a gift deed and also, the fact that the FD and Savings accounts have different 1st holders is not a matter of concern here?

wordings must be gift from both names with Ian numbers to son out of pure love and affection.no consideration.
seniors in profession can advice ...
yes....................

I think no need since the amount is less than 10 lakhs no issue will rise. The said amount can be treated as a gift from a relative. but for safety better have a deed prepared.

Gift Received from Parents is Tax Free (subject to that evidence or sources should keep in file of such accumulated savings/ income of parents), and also advisable to make draft notarised gift deed for reference.


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