13 February 2012
Is gift deed necessary in such case ?
Ans, Yes, in order to avoid tax complications it is advisable to prepare a gify deed confirming the gift of cash/chequr.
If yes, what is the procedure? Should it be registered as well ?
Find hereunder sample deed, registration is not done for such document.
If no, what documentation to be prepared for the gift so made.
Confirmation of Gift of money can be on a plain paper by way of a gift deed, there is no necessity of stamp paper.
Simple format of deed:
KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o ____________________, transfers voluntarily, CASH OF value of which is Rs._____________ (Rupees_____________ only) to my SON/HUSBAND/SON IN LAW SRI.____________ S/o of Sh._________________ (hereinafter referred to as "the donee") To Hold the same to the donee absolutely forever. I further declare that the said gift has been made by me out of my natural love and affection for the donee and the same has been accepted by the donee.
IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.
I, SRI. ______________, the donee hereby accept the gift.
MODIFY THE FORMAT SUITABLY BY ADDING THE AMOUNT AND CHEQUE/ D D NOS'