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gift tax and registration of gift deed for cash received

Homemaker

Father, brother and sister of donor have received remittance from foreign in their account as gift individually for more than Rs.5 lakh each. Donor is NRI. 

Q.1 Is it necessary / obligatory to register Gift Deed in India Maharashtra.

Q.2. Whether donee has to pay Gift Tax.

 
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Income Tax Act explains the close relatives to whom gifts can be given; there are no restrictions on the amount and no tax on such gifts.

The income from such gifts will be taxable in the hands of receiver

 
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Homemaker

Thanx Gandhi saheb. I could understand that in this case receiver is relative under IT act and hence no gift tax is required to be paid. However income earned from the received amount will be taxable to donee. I will be obliged if you guide for first question " Is it necessary / obligatory to register Gift Deed in India Maharashtra."for sum received from son, brother.

 
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Student

Originally posted by : Sandbpunekar
Thanx Gandhi saheb. I could understand that in this case receiver is relative under IT act and hence no gift tax is required to be paid. However income earned from the received amount will be taxable to donee. I will be obliged if you guide for first question " Is it necessary / obligatory to register Gift Deed in India Maharashtra."for sum received from son, brother.

 

No, it is not necessary.

 
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