TAX OF GIFT
VIKAS GUPTA
(Querist) 03 April 2011
This query is : Resolved
Dear Sir,
i have received gift through cheque 5 months ago from brother of my father(uncle), i want to know whether the amount received is exempted and upto which limit. Gift deed has not been yet executed, can it be executed now and is required to be registered and value of stamp paper on which it is to be registered.
Thanks
A V Vishal
(Expert) 03 April 2011
The gift is not taxable.
Gift of any amount received after 1.4.06 is exempt if received
1. From Relatives or ,
2. On the occasion of marriage or,
3. Under a WILL or,
4. By way of inheritance or,
5.In contemplation of Death.
who are Relatives ?
Your spouse
Your brother or sister
Your spouse‘s brother or sister
Your parents’ brother or sister
Your lineal ascendants or descendants
Your spouse‘s ascendants or descendants
Spouse of persons named in 2 to 6 above.
Remember, law is well settled that the donee has to prove Identification,genuineness of transaction and capacity of the donor
1. Always take gift by cheque or draft .
2.Get a gift deed mentioning the relationship.Its always better to mention PAN number of the Donor in the gift deed.
3.Its better if the donors’ return , P &L account and balance sheet , if available , should also be kept ready .In case required , it should be submitted to A.O.
If you do that, gift can be enjoyed without any botheration in future.
soumitra basu
(Expert) 03 April 2011
Very good advise from Mr. Vishal. I agree
MUKESH SHARMA
(Expert) 04 April 2011
ENJOY NO GIFT TAX FROM RELATIVE NO LIMIT
Vishnu Promod Srivastava
(Expert) 07 April 2011
Gift from close relatives as narrated by Advocate Vishal are exempted from income tax.Any income arise from gift amount shall be taxable.
Vishnu Promod Srivastava Advocate
