GIFT ACT

Querist : Anonymous (Querist) 09 June 2010 This query is : Resolved
HI MY MOTHER WANT TO GIVE ME CASH GIFT OF RS 500000 FOR THE PURCHASE OF PLOT. I WANT TO KNOW THAT WHEATHER AS PER LAW SHE CAN GIVE ME GIFT IN CASH OR THE SAME IS REQUIRED TO BE GIVEN THROUGH DD OR CHEQUE.

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A V Vishal (Expert) 09 June 2010
It is better to take through an account payee cheque along with a letter stating the gift by her. This ensures you will not have problems with the taxmen.

AMIT BAJAJ ADVOCATE (Expert) 10 June 2010
Yes cash gift can be given but to prove cash gift the it should be proved that the donor had cash on the day when gift is made.

Its advisable to take gift by DD or cheque since the amount is big.

Kumar Thadhani (Expert) 10 June 2010
Yes,you can receive gift from your mother provided your mother must have source, of that money i.e.Rs5,00,000, to prove that was belonging to her at the time of giving that money.

Surrender K Singal (Expert) 10 June 2010
She may need to have PAN for depositing such Cash in Bank Account for issuing her Cheque as Gift !

Vineet (Expert) 11 June 2010
I agree with Mr Thadani and Mr Singhal. It is always advisable to receive such huge funds through proper banking channels. However, the capacity of donor is also to be established if the genuineness of gift is challenged at any point of time.