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Urgent Please -- Clarification regarding gift from parents

Kr R (JOB) (88 Points)

27 August 2009

Please consider the following scenario and post your reply at the earliest please.

Gift of Rs. 4 lac was given to married woman by her father in Dec'2006 through cheque. Somehow the gift deed could not be made due to illness of father. Also the gift amount not shown in the return for F.Y. 2006-07. In the meantime Father died in 2008 due to heart problem following the bypass surgery. Mother is still alive who is the only legal heir of the died person. Can gift deed be signed by Mother now or is there any other method to regularize the gift amount.

Please reply soon. Thanks in advance.

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6 Replies

(Guest)

Gift is given by father throuh Cheque. So there is a proof that it is from her father. So that will serve as great proof. As there is no deed the problem of treating it as gift or loan will arise.But now the legal heir will have all right. So i think legal heir can sign gift deed.

CA Madhumita Binani (Executive Accounts (SERVICE)) (389 Points)
Replied 27 August 2009

In my opinion also, the legal heir of the deceased can rightly execute the gift deed. And of course the proof of the gift is cheque drawn in the daughter's name from the father's Account.

But this is just an opinion, I did not have legal reference on this.

Regards

Madhumita

Kr R (JOB) (88 Points)
Replied 27 August 2009

Thanks Madhumita & Sathya for posting your reply,

If suppose gift deed is signed now by the legal heir i.e. Mother.

Then will it be valid for income tax purposes. Because the gift amount has not been reflected in the return of relevnt F.Y. (2006-07) although it was tax free. What could be the other implications. Please clarify as i am not aware of the legal procedures.

Can someone post the reply giving some legal reference to this.

Thanks.