Dear Professionals,
I am seeking guidance on the legal and tax requirements for a Gift Deed under the following circumstances:
- Parties: Father (Donor) to Son (Donee). Both are residents of Uttar Pradesh.
- Nature of Gift: Multiple monetary transfers (NEFT/UPI/RTGS) made throughout the Financial Year 2025-26.
- Consolidation: We intend to execute a single consolidated Gift Deed at the end of the FY (March 2026) to cover all transactions instead of individual deeds for each transfer.
My specific queries are:
- Registration vs. Notarization: Since this involves movable property (money) via banking channels, is it mandatory to register the deed at the Sub-Registrar’s office in UP? Or is a notarized deed on ₹100/₹500 stamp paper sufficient for Income Tax assessment purposes?
- UP Stamp Duty 2026: I understand UP recently capped stamp duty for family gifts at ₹5,000. Does this cap apply to "Consolidated Money Gifts" as well, or is that only for immovable property? What is the correct stamp value for a money gift declaration in UP?
- Income Tax/Clubbing: As a major son, will there be any "clubbing of income" implications for my father regarding the interest I earn on this gifted amount?
- Documentation: Is a tabular schedule of transactions (UTR/Date/Amount) within the deed considered valid "evidence of gift" by the IT Department if the deed is executed after the actual transfers?
Looking forward to your expert insights.
CAclubindia
