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Pundalika Achyutha Bhat   09 September 2023

Gift deed by a mother to her daughter and tax implications for the both

A mother wants to give ₹ 5,00,000=00 (Rupees Five Lakhs Only) by Bank Cheque to her daughter in a financial year. Mother's source of Income is her accumulated savings over a period of time. Mother is a retired woman drawing a monthly pension. My queries:

(1) Is there any Gift Tax liability to the mother?

(2) Is there any Income Tax liability to the daughter?

(3) Does the Gift Deed attract stamping as per Indian Stamp Act?.

(4) Any other matter relevant to the above subject?.


 4 Replies

T. Kalaiselvan, Advocate (Advocate)     10 September 2023

Gift of money between mother and daughter do not involve tax implication for both.

Parents can gift any amount of money out of their taxable income to their children without any tax implication on the children.

f it is gift then it is not taxable because it is covered under the defination of relative u/s 57 of income tax act

There is no need for this gift to be executed in a non judicial stamp paper 

Pundalika Achyutha Bhat   10 September 2023

Sir thanks for the guidance. Now one more query as below:

(1) What if the daughter obtaining a Gift from her Mother is an earning woman and an income tax payer also ?

(2) What if the daughter obtaining a Gift from her Mother is not an earning woman?


Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     10 September 2023

Money received as a gift by a lineal descendant is not taxable whether she is already an income-tax payer or not.

Pundalika Achyutha Bhat   10 September 2023

Thank you Sir

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