Tax implications of gift dee

Hello Mahesh, Section 56(2)(vii) of the Income Tax Act relating to taxability of gifts in hands of the receiver is not attracted in this case as gifts received from "RELATIVES" is exempt.

Moreover it should be noted that as per section62 of the act, Income arising from the assets transferred shall not be clubbed in hands of the transferor (father) only if it is irrevocable transfer. Irrevocable transfer means assets transferred to any person not revocable during the life time of the beneficiary or transferee. Also transferor should derive no benefit from such income or assets. So In my view the registration of gift deed is of course must and it must incorporate above clauses in relation to irrevocable transfer.