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Gift Tax – Who Pays and Who Is Exempted ?

Gifts Tax Act was introduced in India firts time in 1958 as gifts can be a big source of money laundering if there are no limits. But this tax was abolished in 1998. Realizing the misuse it was introduced again in 2004 thus making gifting a taxable transaction under head “Income From Other Sources“. So now any gift you receive from a friend or relatives above a threshold limit is your taxable income. However, taxing gifts from all sources may be a difficult situation as there are relations where gifting  is more for care and emotions. To avoid this, relief is given to gifts received from most close relatives. Also, amendments were made recently for gifts by members to HUF, making gifts more tax friendly.

Gift Tax

So where you have to pay tax if you receive assets or money as gifts and where you  will be exempted is what I have discussed below.

The Gift Tax

When gift tax was introduced in 1958, any gift worth more than Rs 25000 were subject to tax. From preview of gift tax any cash, cheque or a draft received form non blood relative was considered as a gift. This was abolished in 1998 and so all gifts of any amount from anyone became tax free. However, it became a good source for money laundering and to curb it the gift tax was reintroduced in 2004. Now, any gift received by Individual or HUF  in excess of Rs 50000 is subject to gift tax and is taxed as Income From Other Sources under Sec 56(2) (vi). This has following elements-

  1. Cash– Where any sum of money above Rs 50000 is received without consideration, then the entire amount is is liable to income tax as income from other sources.
  2. Immovable Property– As per changes by Finance Act 2013 any immovable property received by an Individual or HUF, for a consideration lower than stamp duty value of the immovable property by an amount exceeding Rs 50000, then the difference between stamp duty value and the consideration or purchase price will be taxed in hands of the buyer.
  3. Movable property– In case of movable property also the situation is similar. If the aggregate Fair Market Value of movable property received without consideration exceeds Rs 50000 then the entire aggregate value will be taxable. However, if the movable property is received for a  consideration that falls short of the aggregate FMV  by more than INR 50,000, the difference between the aggregate FMV and the consideration will be  taxed as income from other sources.

 If above provision of gift tax is applied on all relations then it can be a huge dissatisfaction for many where it is more for the love and care. To avoid this, income tax has exempted certain situation from paying any income tax on any amount of gift received.

 When Gift Tax Is Exempted

  • Gift received by Specified Blood relatives, irrespective of the gift value
  • Immovable properties located outside the country
  • Gifts received from relatives on the occasion of marriage. Even the gifts received by daughter-in -law from parents-in-law is exempted but  gifts received by son-in-law from parents-in-law will be taxed
  • Money or property received by way of a Will and Inheritance or in contemplation of the death of the payer is exempt from tax
  • NRIs gifting parents in India from their NRE account
  • HUF receiving gift from its Members
  • Gift from any local authority (as defined under section 10(20)) or from any fund / foundation / university or any trust / institution referred to in section 10(23C) or registered under section 12AA

In all above cases no tax is levied for any amount of gift .  To ease it further following are the relatives as defined in the income tax in consideration of gifts received by Individual or HUF –

  • Spouse of the individual
  • Brother or sister of the individual
  • Brother or sister of the spouse of the individual
  • Brother or sister of either of the parents of the individual
  • Any lineal ascendant or descendant of the individuals
  • Any lineal ascendant or descendant of spouse of the individuals
  • Spouse of the Brother / sister of individual or brother/ sister of spouse of individual
  • Any Member of HUF

 How You Can Gift?

Considering the provision available in income tax, gifting can be a viable tax planning tool. But how should you gift as it involves movable and immovable properties. In general, there is no legal requirement for gifting movable properties. By  handing such items physically gifting provision will be allowed. But its always advisable to document it in  a gift deed to avoid any confrontation. However, if you are gifting a real estate, then the transfer can happen only through a registered gift deed. In both these cases the stamp duty is still payable but the mandatory requirement of a gift deed  is for immovable property.

The Income From Gift

What if the amount received as gift is invested further or the assets is generating income? Does it also qualifies for  a tax free status? Take the case of a minor. If grandparents gift a large amount of cash to their grandchildren and parents invest it for their future, then the investment will earn capital gains or interest.  So how this income will be treated?  As per income tax  any income earned from assets received as a gift will not be tax exempt but will be treated as individual/HUF income. So in above case if the income is of a minor, clubbing of income provision will apply. This means any investment earned on this investment will get clubbed with income of the parent and so the parent will have to pay income tax. Similarly, if NRI gift  money  to their parents in India and they in turn invest this amount, the income will form portion of their earned income.

 Planning through Gift

If you want to transfer any property to your loved ones while you are living gifting can be utilized. If you have formed a HUF then now all members can gift assets to it and HUF does not have to pay any tax on it. Similary NRIs living abroad who wants to ensure their parents have enough money for their needs can gift to them.  You can gift assets to your near relatives through Will. All these are situations where there is no limit on the amount or value of the assets.Thus gifting in many instance can be a good tool for tax planning where you do not want the receiver to get subject to any tax for the gift you wish to make.But while gifting any property to your loved ones, especially if it involves a legal registration, ensure you take the assistance of a competent lawyer as even a gift deed can be contested in court.

The tradition of gifting in marriages, anniversaries, birthdays or small occasion of bonding together will remain forever.  Make gifts to your loved ones but do remember provisions of income tax as the onus will be on the receiver.

Have you gifted any large sum of money or assets to your relatives not falling in the above list? Are they aware on the income tax provisions?

Share your story…

Gift Tax - Who Pays and Who Is Exempted ? by

Comments

  1. capt r c pawar says:

    please guide about the exemption of gift tax for the person giving the gift to his close relatives in the form of cash

    • Capt R C Pawar,

      Gift given in cash or other means to specified blood relatives is tax free in the hands of the recipient. For person who is giving the gift to his close relatives, the tax liability stays as it is i.e. if its coming from any of his income sources he is liable to pay income tax as per his income tax slab and then only free to gift the money.

  2. vijay kumar says:

    can cash gift more than rs50000 to married daughter is liable to tax if any as per income tax act

  3. chandru says:

    Hi,

    I want to gift my money (I am NRI) to my wife & parents in India. Do they have any restriction on how they spend them?

    In short, can they use the money to buy a property or assest?

    • Chandru,

      Your wife and parents won’t have any restriction on spending the money. However, in the case of non-earning spouse clubbing provisions apply i.e. if your spouse invest the money and it earns an income then that income will get clubbed with your income. So if she invest in property to sell it later the capital gains earned will be your income. However, if she is earning then it will be treated as her income.In your parents case, the clubbing provisions don’t apply.

  4. Stocks_profit says:

    I have a trading account and little knowledge and experience in trading . so, my friend gave me 100000 rs through net banking to trade. he is a employee, he is not supposed to indulge in trading in stock market . we made profits and the amount is 1600000. after removing taxes according to slab rates 2014-15 is 1285850 rs . we want to share this in equal halfs, 642925 rs each. now the problem is how to give this money to my friend with out any further taxation and he wants have it as white money in bank acc . can i give this amount as a loan @ 0 persent without any time limit and forget or any better ideas to give money to him .he is already married, so cant use that technique. what is procedure to give loan

  5. Sharnam says:

    A immovable property in the name of proprietor or pvt ltd firm can be gifted to blood relative ?

    Can a property in the name of Huf can be gifted to one of the members.

    What would be the tax liability in the above cases

    • Sharnam,

      Very clearly Income tax has specified the definition of relatives from whom gift tax will be exempted. Immovable property received from a pvt ltd firm is not exempted. Similarly HUF giving property to its members is not exempted from gift tax. In all such cases the difference between stamp duty value and the consideration or purchase price will be taxed in hands of the person receiving the gift.

      • varun jain says:

        Can I give rs500000 as a gift to my HUF without pay gift tax I am kerta of huf
        2 can my father give any amount give to my HUF AS a gift without pay gift tax
        Thanks
        Varun jain

      • shiva says:

        hi,

        “Similarly HUF giving property to its members is not exempted from gift tax.”

        In the article it falls under the exemption, isn’t it?

  6. pritish bose says:

    I just like to ask 1 thing, that is if I make a Huf and gift it money as a member or Co parcener, then will the amount I am gifting be deducted from my gross income ( gross income which is the income remaining after all deductions under various sections are subtracted ). Please reply at earliest. my email I’d is Senorpianist @yahoo.co.in

    • Pritish,

      Donor do not avail any deduction of the money gifted to relatives or HUF. The deduction you are mentioning is available only in case of donation to charitable organizations. In case of gift to relatives or HUF, its the donee i.e. person receiving the gift who is liable for gift tax and so can claim for exemption.
      Still take a view from a tax expert.

  7. Abhinav says:

    If i receive a gift (cash) from my grandfather’s brother NRI in US, will it be taxable?

    • Abhinav,

      The gift tax exemption goes up to lineal ascendant or descendant of the individual or spouse. Now –
      Lineal Ascendant means your father,grandfather, great grand father… Lineal Descendant means your son, grand son, great grand son….

      The provision give exemption for gift from brother or sister of up to parents only.

      Considering all above in my view gift from your grandfathers brother will not be exempted.

      However this is my view within understanding of the statements in the gift tax. You should clarify this from a tax or legal expert.

  8. Rajan says:

    I am an NRI and hold shares present value Rs 20 Lacs purchased more than 20 years Back. I want to Gift the shares to my father in law so that he can use the Dividend income for his medical expennses.
    Please let me know if this would attract any tax

  9. vijay kumar jain says:

    Sir
    Can Grand mother give gift of 2 lakh to wife of grand son without pay gift tax
    Thanks

    • Vijay,

      In my view this gift to grandson wife is not exempted from Gift tax.

      You can get more clarity from a legal expert.

      • vijay kumar jain says:

        Sir
        MY C A told me that the amount of Rs 200000 as a gift given by grand mother of husband is gift tax free please give your consent or advice
        Thanks
        Vijay kumar jain

        • Vijay,

          There is clear relationship defined in the gift tax provision from where gift received is tax exempted.The relationships stated is :

          Spouse of the individual
          Brother or sister of the individual
          Brother or sister of the spouse of the individual
          Brother or sister of either of the parents of the individual
          Any lineal ascendant or descendant of the individuals
          Any lineal ascendant or descendant of spouse of the individuals
          Spouse of the Brother / sister of individual or brother/ sister of spouse of individual
          Any Member of HUF

          In my view any relationship falling outside these stated provisions will not be tax exempted. In your case the relationship should fall under this provision- Any lineal ascendant or descendant of spouse of the individuals.. So it should be tax exempted.

          However, this is my view. Your tax expert may give you more rational behind his statements.

  10. SUDHIR CHOPRA says:

    My Brother is an NRI and owns one house in India. He wants to gift 50% ownership in the said property to me (his real brother). will it attract any tax and do we need to register this gift deed?

    • Sudhir,

      Gifts to Specified Blood Relatives is exempted from Gift tax. Since brother comes in the exemption list there will not be any tax liability on you. However, immovable property can be gifted only through a registered gift deed.

  11. muralidharan says:

    My friend’s brother in law want to give gift of Rs.10.00 lacs (by cheque) to my friend. Is this amount taxable in the hands of my friend.

    Thankyou.

    • Muralidahran,

      Brother or sister of the spouse of the individual is an exempted relatives under the gift tax provision. So your friend should be exempted from paying tax on the gifted amount.

      Seek opinion of a legal expert to get more clarity.

  12. Rohit says:

    Hi,

    I want to gift Rs 100000.00 to my father or friend. My father is dependent upon me. Which relation will be attract any tax. How much amount is tax exempt or there is available any such criteria to avail tax exempt.

  13. Arjun says:

    Hi Jitendra,

    I want to gift my mausa Rs. 1,00,000/- on his daughter’s wedding. Will I get this amount deducted from my taxable income? Will my mausa get any tax benefit?

    • Arjun,

      Firstly there is no tax deduction on gifting money to your relatives. So you won’t avail any benefit on this amount.

      Secondly gifting to specified blood relatives is exempted from gift tax and one of this relationship is “Brother or sister of either of the parents of the individual”. So in my view, gifting to Mausaji won’t be tax exempted and he will have to show this amount as his income.

      You can get more clarification from a tax expert.

  14. shubham garg says:

    Sir i want give gift to my mother in cash Rs 500000. Then have any requirement of any gift deed or cheque transaction or any other proof of gift in cash? Tell me process of giving gift in cash

    • Shubham,

      Avoid gifting in Cash.Wiser to do it through a cheque. You do not need any gift deed for movable assets but if you do it ion cash then will be good to have it.

      • Sachin says:

        Why the gift cannot be given in cash? What if there is no audit case?

        • Sachin,

          Gift can be given in cash, cheque, draft etc.. The only issue is proving the source of money and that it was given by you. So either you have a gift deed written or if its through a banking channel then it establish the source that it is being gifted by you. Considering this it is advisable that route gift, if its money being given, through the banking channel.

  15. Lokesh says:

    sir i want to gift Rs 1000000 to my father. My father will invest this money in fixed deposit. What will be the taxability of FDR interest? Is it taxable in my hand or my father’s hand?

  16. Devesh says:

    One of our colleague has been diagnosed with Cancer. He has to go to US for clinical tests. We all the colleagues want to contribute @ Rs 10000/- as assistance to him for meeting overseas medical expenses. The total amount will be somewhere around Rs. 8 to 10 lacs. Please clarify whether there will be any tax implications to the receiver under Gift or Income Tax.
    Thanks

    • Devesh,

      Yes there will be tax implications on your friend if this is treated as a gift. Also donations only to some specified institutions are available for tax exemptions. In my view lending may be a viable option from tax perspective.But not sure how you can apply in this situation. Take view of some tax expert.

  17. Sekhar says:

    My parents made a will during their life time. Upon their death the property was sold to share equally among 7 siblings. Being an NRI do i have to pay tax on the sales proceeds received in cheque ? If i deposit this cheque in my NRO account, do the bank deduct tax at source on the interest earned out of this deposit. Is my understanding correct or the gift amount not qualified for tax since it is inheritance from parents ?

    • Sekhar,

      There is no tax on inheritance in India. But if the property is sold then the capital gains tax liability arises on the owner of the assets.If after selling the amount is distributed among legal heirs then they will be liable for capital gains tax on their share.So you will have to pay capital gains tax on your respective share.
      In NRO account the interest is taxable and not tax exempted. Bank deduct TDS on the interest earned through bank deposits.
      These are my views. Do take views of a tax expert for more clarity.

  18. padma jain says:

    Sir
    Can I give shares of Rs six lakh as a gift to wife of my grand son without pay gift tax
    thanks

    • Padma,

      In my view this relationship is not exempted from gift tax. However you can gift them to your grandson and he will be exempted from gift tax. If your grandson in turn gifts them to his wife then it will be tax exempted. However, the income from those shares will get clubbed with his income if his wife is a home maker. But since long term capital gains tax from shares is Nil he will not pay any tax on the gains.

      You can seek a tax expert views for more clarity.

  19. KN Punj says:

    Jitendra Ji, My aged Father wants to gift the house now in his name to me – which is of substantial value.
    Is any gift tax payable on it? Will I need to pay stamp duty on it when I get it transferred in my name ?
    Thank You.

    • KN Punj,

      There is no tax liability on the gifts received by a child form his/her parents. However, A property can be gifted only through a Registered Gift deed. Since it gets registered the stamp duty is payable. The rate of this duty may vary across states so you will have to confirm in your area of location.

      • Binay says:

        Sir,
        My mother in law wants to give her share of property to my wife by registered gift deed ,what precautions should I take to avoid taxes. Please reply

        • Binay,

          Since its a mother daughter relashionship there will b eno gift tax implications. The relationship is exempted from gift tax. Also the gifting will happen through a registered gift deed so stamp duty will be payable which you cannot avoid.

          • Darshan Soni says:

            Dear Jitendra Sir,

            I want to know that, being shares a movable assets, gift deed registration and Stamp duty is required in gifting of shares? Please reply soon.

          • Darshan,

            Gift deed is mandatory only in case of immovable assets which includes property. In case of movable assets the deed is not mandatory and there is no stamp duty applicable. However, it is advisable that you execute a gift deed on a non-judicial stamp paper my mentioning the details of the transaction for legal records and to avoid any tax queries in future.

  20. M S PARTHASARATHY says:

    I purchased a flat in the joint names of myself and my wife, who does not have any independent income of her own, from my funds. The flat has been sold. Should the entire capital gains/losses be accounted in my tax return as my gains/losses?
    Thanks for your response.
    Regards
    Parthasarathy

  21. Mukesh says:

    I have a flat jointly with my wife. We want to give it to our daughter as a wedding gift. Do we sell and give money to her or transfer the deed. pl explain the tax implications on my part as well as on my daughter. my daughter and wife are non earning but have PAN.

    • Mukesh,

      Gifts received by the bride are tax exempted. So there will be no liability on her on the gifted amount. However when it comes to real estate then two situations arises which needs to be dealt in following way:

      1. To gift an immovable property a registered gift deed is necessary. Since it will get registered the stamp duty will be payable but will depend on the state provisions. In some states stamp duty on gifting is lower. Post gifting whenever your daughter sells the house she will be liable for capital gains tax.
      2. If you sell the property then capital gains tax liability will arise on you. After paying tax whatever amount you gift to your daughter will be tax exempted for her.

      I hope this answers your query. Do note that these are my views. You should seek a tax expert advice before you make a decision.

      • Mukesh says:

        Dear Solanki
        Thanks for the answer. I understand that immovable property as wedding gifts given by parents to daughter are tax free on the part of both donor and donee however donor has to pay capital gains tax if he sells and gifts the amount as wedding gift. Is it right?

  22. P.Rao says:

    I am 65 years old father and a tax payer in 20% slab. I have purchsed a dwelling house 15 months ago. Due my old age I want to gift my house to my eldest son and registered in his name. Whether, gifting of my house will attract any gift tax on me or on my son ? If so what is gift tax rate ?

    • P.Rao,

      Immovable property can be gifted only through a registered gift deed. There will not be any tax liability on you and your son on gifting the property but the gift deed will get registered and so stamp duty will be payable. The rate of the stamp duty will be as per your state laws which you can get confirmed from sub-registrar office.

  23. Dishant says:

    Q 1) If I gift 2 lakh to my friend , will it be added to his income ?

    Q 2) If I gift 2 lakh to my brother who is working , Does clubbing provisions apply to it ?

  24. rajesh says:

    hi can a mother in law gift her 50 % share in the flat to her daughter in law thru gift deed what will be the stamp duty charges for the same

    • Rajesh,

      The stamp duty on the registration of gift deed for transfer of property may be equivalent to general stamp duty or lower. Since stamp duty is a state provision it may vary across states. So you need to find out in your state where the gift deed will get registered.

  25. Prerna says:

    Sir,
    I want to give 4 lakhs to my mother which she will deposit in bank to pay her housing loan. I understand that I will concur no tax from my side and that paying by cheque is wiser.
    My query is that will my mother attract any tax on the money gifted to her by me?

  26. Harpreet says:

    Respected Sir
    My father wants to sell a portion of our home where we live i.e my parents, my family, my younger brother’s family. He wants to give me that money (received from selling that portion) to purchase a new floor for my family in my name. I’ll move to that floor & relinquish my share in the old house.
    I want to know that will I have to pay any income tax or Capital gains tax on that money received with which I’ll purchase the new builder floor ?
    If yes then sha’ll I tell him to purchase the new floor in his own name & then Gift it to me i.e Gift Deed ? As i will not be in position to pay any income tax, capital gains tax or Gift tax. Will there be any stamp duty also payable on such transfer of money.
    kindly reply early
    with best regards
    Harpreet

    • Harpreet,

      When an owner sells his share or ownership in the property he is liable for capital gains tax. So if your father is selling his share from the house then he will be liable for capital gains tax. Post taxation if he gift the amount to you there will be no tax liability on you. You can then purchase a house with the gifted amount. Its wiser for him to gift the amount then a property as stamp duty will be payable if he gift a property to you.

  27. A.B. says:

    Sir,
    I had heard about gift return.
    For confirmation, I had checked section 13 , sec. 14 and 14A, of GIFT TAX ACT, 1958.

    Just like income tax return, there is some provision for gift return to be filed. But i am confused about it.

    Please, clarify about the requirement of filing GIFT RETURN, for gift of money, received and given during financial year.

  28. A.B. says:

    Can a non-resident (NRI) son , give gift of money amount to his resident father , by sending money from abroad, into his father’s bank account in india ?

    In a gift deed, i had read as following :

    ” I declare that I am resident of india and…….so ..n ..so……………” .

    Does it means….that a non resident cannot prepare and sign a gift deed ?

    Is it compulsory that the giver of gift should be RESIDENT ?
    Is a non-resident son not eligible for giving gift to his father ?
    Is a non resident son , not eligible for making and signing gift deed ?

  29. Arif says:

    Dear Sir,

    I had given a goodly loan (without any interest) of INR 10,00,000 (Ten Lakh) to one of my friend through cheque from my NRE account. Now my friend wants to return that borrowed amount of 10 Lakhs to me through cheque.
    The problem is that my NRE account does not allow to have any deposit transactions within India. So I have to deposit this 10 lakhs cheque in my normal rupee account in India.
    Now by doing this, whether i will have any tax liability. For your information, being an NRI i don’t file tax returns in India as there is no source of my income yet in India & also the rupee account which i holds in India has less than 1 lakhs.
    Can you please advise whether i will have any tax liability or do i need to file income tax return considering my above situation.?

    Thanks in advance for your kind advise

    Rgds,

    Arif

    • Arif,

      There are rules laid down by RBI on repatriable loans to Indian resident by NRI relatives or friends. I am not well versed with these rules and so will not be able to answer your query. Allow me few days to consult a tax expert and i will reply with relevant information.

  30. Nimisha says:

    Hello.

    You have been a source of some useful information to many people and really appreciate the help you are extending to people like me.

    I am planning to gift an immovable property I recently purchased to my sister via a gift deed. My question is whether there should be a minimum time period i should wait before I gift this property or can I gift this anytime? I had purchased this property a month ago.

    Thank you in advance.

    • Nimisha,

      There is no time period from your purchase for gifting to your sister. However, in case of gifting of immovable property stamp duty is payable which you should take note.

      • Nimisha says:

        Thank you so much for your inputs.

        One final question on the same lines, a property i sold recently was purchased on a Loan from a local Bank in India, and a portion of the EMIs was paid by a close NRI relative of mine via his NRE account, from the sale proceed will he incur tax if I return that amount to his NRE account in India?

        Thank you.

        • Nimisha,

          There are rules by RBI for NRIs. The transaction has to meet these rules. I am now well aware how this transaction will be treated since loan was on your name. Also, if it was a loan to resident Indian then how payment was accepted through NRE account.

          Will have to check these details with a tax expert.

          • Nimisha says:

            Hello Mr. Solanki

            Just to provide a clearer picture, the final amount to pre-close the loan was paid via a Cheque issued directly in favour of the bank towards my resident home loan by my close relative from his NRE account over two years ago. In this case if i repay this amount back, will it be taxable for him? He has no other source of income in India.

  31. vijay kumar jain says:

    Sir
    My purchase value of shares rs 40000 and purchase date 8 year ago now market value of these shares is rs 250000 questions is that I give all shares to wife of my grand son as a gift I want know what is value of the gift, purchase value, or market value
    Thanks
    Vijay kumar jain

  32. Sitanshu says:

    Hello, Which is the correct form to declare the cash gifts received from a relative in AY 2013-14? The gift to be declared is from a son to his father with non-taxable salary. Thanks!

    • Sitanshu,

      The correct mode is to make the transaction via a cheque from father account to son’s account. There is no requirement of any registered gift deed for movable items but still you can have the gifting documented.

  33. Vikas says:

    I recently transfered 21,000 Rs online in my sister’s bank account & gave the narration – Transferred as a gift for Fixed Deposit.

    Would I be tax exempted for this 21K transfer as a proof of FD ? If yes, which category it falls ? Can I show it in my expenses or ?

    • Vikas,

      The Donor do not have any tax liability on the amount gifted. You will have to pay tax on this amount as it is received by you i..e as income or gains whatever be the source. If this money is post tax savings then you do not have any tax liability. But you cannot claim any tax exemption or deduction on it. Its the receiver who have the tax liability. But since gift received from blood relatives is tax exempted this amount will be tax exempted for your sister too.

      • Sneha jain says:

        Hi,
        I have a doubt here…i also have a similar case..my question is who will get exemption for the fixed deposit u/s 80c..

      • ashok says:

        Is the income earned by investment or interest on the gifted money by sister is to be added in brothers’s income?

      • ashok says:

        I want to give about Rs. 5.00 lakhs to my daughter – employed and unmarried. i want to know whether the interest on this amount or any income out of this amount to her is taxable for me?

  34. darshan says:

    My wife’s file is showing loans from relatives (brother ,father etc) and negative capital due to losses in share market. Can I gift an amount of rs 10,00,000 to my wife which she can use to pay the loan creditors.
    Will this amount be taxable in either my file or hers
    Please guide
    Thank you

  35. Manish says:

    Kindly suggest.
    My dad whos a retired person has sold a pc of land and wants to gift/transfer me 10,00,000/- in my account which will be utilized for buying a new flat.
    Is he liable to pay tax for the same.
    Will I have to pay tax.

  36. Arjun says:

    My mother-in-law wanted to make a gift of 2 lakhs to my wife and me together. We were unaware of the gift tax implications, and she wrote the cheque to me and it has been credited. If I now transfer the money to my wife, can this amount be exempted? Can we still claim that this is a gift from my wife’s mother to my wife?
    Thanks.

    • Arjun,

      You cannot claim this gift tax exemption by transferring amount from yours to your wife account. The amount should come for her mothers account.

      Visit a tax professional to seek an appropriate advice on your situation.

  37. Soni says:

    Hello,
    My father had made a term deposit of ₹ 400000 in a bank and had given my name as a nominee. He passed away in 2014. So the bank handed over me a DD for that amonut. Now if i have to put this DD in my savings account, will the tax be deducted. How do i prove that this money was a gift or inherited.

    • Soni,

      This money you have received as a nominee and so you are only a custodian of this amount. If there is any Will then this money will go to the person designated in the Will. If there is none then all your father assets including this deposit will be distributed among his legal heirs i.e. you, your mother, your brother or sister, if any, in equal proportion. To claim the share you will have to get the succession certificate from the court.
      Since this money is received under inheritance there will be no tax on it.

  38. A.B.Kumar says:

    Dear Mr.Solanki,

    Can I gift FD’s to my mother and make myself as Nominee for the Deposit? Will there be any tax issues? Please advise.

    Regards
    Kumar

    • A.B.Kumar,

      The role of the nominee comes in during the death of the owner of the asset. In my view it should not be an issue. The taxability won’t arise since gift with specified blood relatives has been exempted for all amounts. Nomination does impact taxability during gifting.

      But these are my views and you should get it clarified from a tax expert

  39. Ms Shah says:

    I am a US citizen.I wish to gift to my mother in india app USD 1,00,000.What tax wl she have to pay in India?what is the procedure for her in recording this while filing returns

    • Ms Shah,

      Money gifted by NRIs to their parents in India is tax exempted. So your mother will not have any tax liability.Since the amount is tax exempted she is not required to show it in ITR.

      You can clarify from a tax expert on Income Tax Filing.

  40. Birendranath Singh says:

    My fathers age is 78 years. He has 1000 physical shares of a company in his name, and another 1000 physical shares in both our names. He wants to transfer these shares in my name. Should we pay stamp duty for the transfer. Also what are the tax implications.

    • Birendranath,

      In my view there will not be any stamp duty since now all shares are to be held in demat account. So when you are transferring these shares the application will go to the company registrar office and the shares will be transferred in your demat account.

      For tax implication i am not fully aware of. There will not be any gift tax due to the relation you two hold but need to check on capital gains if you intend to sell them before a year.

      A tax expert will be able to answer you more accurately.

  41. vijay jain says:

    Can I give rs 50000 as a gift to my son’s huf huf members son and wife of son
    Thanks
    Vijay jain

    • varun jain says:

      Can I give rs500000 as a gift to my HUF without pay gift tax I am kerta of huf
      2 can my father give any amount give to my HUF AS a gift without pay gift tax can rs 50000 give as a gift tax free to any body or huf
      2 can I give ru 200000 as a gift to wife of my son please advise early

      Thanks
      Varun jain

      • varun jain says:

        Sir
        Can I give rs 100000 as a gift to my HUF I am kerta of huf and my wife is member
        2 my father also want give rs500000 to my HUF AS a gift can amount exempt from gift tax
        3 can my father give rs50000 to my wife as a gift
        Thanks

        Varun jain

        • Varun,

          In general gift received by HUF from its members is tax exempted as per Income tax provisions so gift from you would be non taxable for HUF. However, the exemption is only from members. If your father is not a member of HUF then gift from him will be taxed beyond R 50000 in a financial year as from HUF only gift from members is tax exempted. Lastly, gift from father in law to daughter in law is not covered under list of relatives where gift tax is exempted. But since gift tax is exempted till R 50000 irrespective of the relations the amount received by your wife will not be taxed.

          These are my views and you should check with a good tax expert.

  42. ashu says:

    sir my maushaji wants to gift me his one flat hwos SDV exceeds 50000 so is this relation comes under tax consumption

    • Ashu,

      Check the relationships which are tax exempted. Most likely this gift will not be tax exempted If i go by the definitions of exempted list of relatives-

      Spouse of the individual
      Brother or sister of the individual
      Brother or sister of the spouse of the individual
      Brother or sister of either of the parents of the individual
      Any lineal ascendant or descendant of the individuals
      Any lineal ascendant or descendant of spouse of the individuals
      Spouse of the Brother / sister of individual or brother/ sister of spouse of individual
      Any Member of HUF

      So the gift from your mausiji may be tax exempted because of this clause- Brother or sister of either of the parents of the individual..

      Check with a tax expert on this..

  43. KRISHNA says:

    Sir, will it be a Tax liable if I deposit 1 lac sum amount to my saving account which I got from monthly saving of father’s salary. I too have a annual salary of 2.01 lac per annum.

    Thanks,
    Krishna

    • Krishna,

      There will be no tax liability on you as gift received by children from their parents is tax exempted irrespective of the amount. However, good to have the transfer done through a cheque to provide the source of the funds.

  44. Dinesh Tank says:

    Sir,
    I want to gift an amount of Rs.50000/- every year to my unmarried major daughter, who is serving in bank. Can I give so ?

    Thanks,

    Dinesh Tank

  45. Yog Raj Wadhwa says:

    My Sister has made a gift deed and relinquished her ownership rights in favour of her major unmarried daughter for an immovable property which has been accepted by the daughter.
    The Gift deed is Noterised at present and yet to be registered. It will get registered when the daughter will have accumulated/saved funds from her own sources as her mother is not willing to incur any amount of on Stamp duty etc.
    Please advise on the status of the Gift Deed under I tax Act, Gift Tax Act and Transfer of Property Act with applicable dates if there is income from that property, Liability of Property Taxes and maintenance expenditure of the Property.

  46. Hi Sir,
    I got some amount of Rs40 Lakhs from an ancestral property.
    I want to give Rs 15 Lakhs to my father to puchase a property. Later he will gift me that property.so i want to know that i am liable to pay any tax.

    • Mohammad Ismail,

      Gifting an immovable property happens through a registered gift deed and stamp duty is applicable as per state laws. So i don’t see much merit in routing the transaction you have highlighted. Is there any specific reason for the transaction you have illustrated?

  47. Shaan says:

    Dear Sir,
    My dad & mom wish to gift me some cash towards my purchase of a house. What is the amount of stamp duty & registration I will incur for the same plz ?
    My maternal aunt also wishes to give me some money. Should she gift it instead to my mother(her sister) and then in turn my mother gift it to me along with the other money ?

    plz advise.

    Many thanks.

    • Shaan,

      The stamp duty and registration charges is the state jurisdiction and so vary across states. You will have to confirm from the local sub-registrar office where property gets registered. The gift from maternal aunt should also be tax exempted as per the below list of exempted relatives:

      Spouse of the individual
      Brother or sister of the individual
      Brother or sister of the spouse of the individual
      Brother or sister of either of the parents of the individual
      Any lineal ascendant or descendant of the individuals
      Any lineal ascendant or descendant of spouse of the individuals
      Spouse of the Brother / sister of individual or brother/ sister of spouse of individual
      Any Member of HUF

      Take view of a tax expert also for your situation.

  48. gagan says:

    If I gift 10,00,000 to my brother who is not earning & he invests it. The earnings from the interest would be tax free because it would be lesser than the tax slab. And it would not be considered as my income. Is that right?

    • Gagan,

      Ideally yes. If you gift the amount to your brother then it is exempted from gift tax. If your brother in turn invest it then earnings from it will be his and so he will pay tax according to his tax liability.

      But do take view of a tax expert as clubbing of provision go deep to identify transactions which falls under its preview.

  49. Jitendra misra says:

    Dear Sir,
    I made an fixed deposit directly from my account in my mothers name. My mother is eighty years old. Would the fixed deposit be considered as gift to my mother and interest earned on it would not be clubbed in my income.

    • Jitendra,

      Ideally gift given to parents is exempted and income from it is not clubbed. So interest on your mothers investments will not get clubbed with yours. But you have made FD from your savings account which in my view will not be treated as gift till you transfer the amount to her. Do remember that even then it will be assessed that the transaction was not merely to avoid tax. So to make the gift transfer the amount to her and document it in writing.

  50. AMOL says:

    Dear Sir,
    I had gone through numerous queries which are very nicely answered by you.
    If the NRI transfers money to his wife’s account in India and then wife put it in FD. will the interest earned is a taxable income of husband if he came back to India and start working here.
    Secondly, if while working in india if wife manages to save money from daily expenses and then put it in FD , on whose accont the interest earned is taxable if wife has no source of income?
    thanks.

    • Anmol,

      Any income earned from the gift to a housewife falls under the clubbing provision. So the interest earned from fixed deposit will get clubbed with your income.

      With regards to the money given for daily expenses it is not counted as gift. If your wife saves money from it and then invest in my view it should not get clubbed. But I am not very sure on this aspect. Need to get clarification from a tax expert.

  51. vaneet says:

    How can my firm gift a new car to someone as reward. What to know about billing and RC procedure and how can I show this to company expense. Kindly reply CNT 09988201148

  52. DEEPA RANGARAJAN says:

    sir, my mom bought a a piece of land in chennai and wants to gift to me. she has registered the land on her name and wants to transfer it to my name by gifting it. what would be tax implications for both of us. Iam an NRI.

  53. Dev says:

    Hi,
    My wife received 10.00 lacs in cash from her cousin
    as a marriage gift. She has no source of income and invested the amount in a Bank FD.There is no Gift Deed for the above. Would the Gift amount be taxed or the interest on the FD be taxed.Would it be clubbed to my income.

  54. ANIRUDHA THAKAR says:

    My father had a bungalow,which we have developed into apartments and he has in his name 3 flats.Of these,he stays in 1st,me in 2nd and my brother in 3rd.My father now wants to transfer 2nd and 3rd in our respective names.Will any kind of taxes/stamp duty be liable on this/Please advise

    • Anirudha,

      Yes stamp duty will be applicable as per the states laws whether its a transfer or gifting. Capital gains will not arise if he is gifting the property. In that case only stamp duty will be applicable.

  55. Nilesh Kapadia says:

    Hello… I am a NRI. My parents are selling a residential property and want to give the proceeds to me as a gift. I want to transfer the monies to the US as I live in Chicago. I have a NRO and a NRI account in India. I have 2 questions.
    1. Is it better for my parents to give me the monies after they sell this property as a gift in Indian rupees. Do I have to pay tax. Can I transfer the amount of 8 Crs. to the US.
    2. Or is it better for them to give me the property as a gift and I sell it. Will I have to pay tax. Can I move this cash to the US. Thanks.

    • Nilesh,

      Your case pertains to two asepcts- One is taxability in India and other is repatriation. With regards to taxability since currently your parents owns the property they will be liable for capital gains tax if they sell it. After paying the tax if they gift the proceeds to you then you can repatriate the funds within the limit prescribed by RBI. It may not be possible to repatriate the entire amount at one go as the prescribed limit is on yearly basis.
      The second aspect is if they gift the property as it is to you. In such case if you sell it then you will be liable to pay the capital gains tax in India and then you can repatriate the funds again within the prescribed limit. But there will be additional cost to you since gifting an immovable property can take place through a registered gift deed only the stamp duty will be applicable as per the state laws.

      So to save cost gifting money by your parents looks more feasible.

      But I am not a tax expert so have given my views within my understanding. You should seek guidance from a good tax expert before you make any decision.

  56. Deepa,

    There will be no gift tax implication on gifting the said property either on you or your mother as the relation is exempted under Income Tax provisions. However, there will be stamp duty applicable as you register the gift deed.The rate of this stamp duty on gifting varies across states as it come under state laws. You can get it confirmed from your local sub registrar office.

  57. Amit says:

    Hello Mr Solanki

    Question on US tax laws. I plan to gift INR 40 lakhs from my NRO account to my sister-in-law who is also a NRI. I believe that she qualifies under close relative provision and hence there will be no tax implication in India. But given that under US laws the tax implication falls on the donor, do I need to report this gift in the US? Thanks in advance for your reply.

    • Amit,

      I am not a tax expert so difficult to comment on your query. It will be wiser if you seek guidance from an international tax expert. If you need assistance i may guide you to someone in India.

  58. sunitha says:

    Sir,
    My 2 brothers gave me cash (thru cheque and online transfer) in lieu of my share in my mother’s house. They then got the house registered through a gift deed in both their names.
    From your article i understand that the amount i received is EXEMPT from tax.
    Since the money is transferred to my account, should i still mention this amount in my tax return? or should i prepare an affidavit/legal document as proof mentioning that this amount has been gifted to me from my brothers , to establish the source of income?

    • Sunitha,

      Ideally if the transaction is done through online transfer or cheque its a good proof that the amount has come form your brothers. However what looks from your statement is that this money was not a gift but consideration of your share in your mothers house which is different.

      I am not a tax expert and so will be difficult to comment on how you should report this transaction. It will be wiser if you seek advice from a good Tax expert.

  59. Sid says:

    I have a query. My dad wanted to give me 6,00,000 Rs which i would need for some payment to the builder with whom i booked a flat.

    Do you think receiving money through NEFT is ok or should i get it thru cheque?
    Also, would there be any tax clause for either of us or do we need to declare or do any documentation for this transaction?

    Thanks in advance.

    • Sid,

      In my view, with regards to movable assets i.e. cash or any other, gift deed registration is not necessary.A hand over of the asset to the person will be sufficient. In case of money transfer a transfer through a cheque or online is acceptable.

      In case of gift from parents the amount is exempted from gift tax without any limits. So there will be no tax liability on you. For your father there will be no applicability of any gift tax a she is the person giving it.

      Still take advice from a tax expert for transaction proof.

  60. dev says:

    Hi,
    My wife received 10.00 lacs in cash from her cousin
    as a marriage gift. She has no source of income and invested the amount in a Bank FD.There is no Gift Deed for the above. Would the Gift amount be taxed or the interest on the FD be taxed.Would it be clubbed to my income.

    • Dev,

      Gifts received during marriage is exempted from gift tax and so there will be no tax liability on your spouse. Also, since it is the amount received on her marriage it will be treated as solely her property. So income from those assets will not get clubbed with your income.

      Check with a tax expert to verify this.

  61. Crestclub says:

    A person gifts large sum of money to his daughter. Daughter invests it and generates additional money from this and pays tax as required. After some time she gets job and becomes fiancially strong. So she decides to give all the gift she received from his father including the additional money generated. Now as we know that gift from daughter to parent is again tax free in the hands of receiver. An opinion on as to how this entire transaction can be viewed from tax angle?

    • Crestclub,

      It will be tax exempted as per the tax provisions.In its totality the transactions were not done to avoid tax but for the love and affection one has towards his family members. In my view there is no tax liability arising in this case.Still a tax expert can deal in more detail whether there can be any tax angle in this. As per provisions the gift here is tax exempted.

  62. Priya says:

    Greetings,
    We four (3 brothers and myself). One of my brothers son brought my father property from we 3(trough bank loan) and he settled to me 17 lakhs and he asking form 16. I don’t have Pan card. Please let me know do I need to give form 16 to my brother’s son and I need to pay Tax.Tax?

    Thanks
    Priya

  63. srikanth says:

    sir, I got non-taxable retirement funds like PF, gratuity(within limits). I want to gift a portion say 15 lakhs to my spouse who is house-wife. Is this amount taxable in the hands of my wife. Hope the interest earned by her on this amount kept in bank deposits is taxable in her name only. If the interest earned is less than 1.3 lakhs for this financial year , I hope she need not pay any income-tax. please clarify. Thanking you

    • Srikanth,

      In cases of gift there are some situations where the income from the asset is clubbed with the income of the donor. Gift given to housewife or minor child falls in this provision. So in your case the interest earned on the gifted money to your housewife will get clubbed with your income and will be taxed accordingly.

  64. Amit says:

    What if someone want to donate his immoveable property to some registered trust/ngo. Will such Trust/NGO have to pay gift tax?
    or it is better to make part off such immoveable property by way of will to such trust/ngo. ? or keep a clause to sell of the property and give that money to that particular trust/ngo ?

    • Amit,

      If its a charitable trust or NGO then the donation will be tax exempted as per Income Tax provisions. However, immovable property transfers always involve heavy cost primarily stamp duty. Only if it has come through a Will the cost is reduced.

      Ideally donating movable assets is viable if you wish to do it in your lifetime. It will save your cost and lot of paperwork.

  65. chitra says:

    hello sir, my father just sold a flat which was in my mother’s name, now he wants to send the money around Rs 40 lakhs to my husband as a marriage gift who lives out of India. Right now I am in India waiting for my visa to arrive. I wanted to confirm that whether it will be exempted or taxed. Please guide us.
    Thank you

    • Chitra,

      Gift to son-in-law are not exempted from gift tax and so your husband will have to pay tax on this gift of R 40 lakh. But if the flat was in your mother name then who is the real owner when it is being sold. This ownership will decide who is gifting the amount. But even then your husband will have to pay tax on gift received.

  66. Jwala says:

    Gift of Rs. 15 lacs received from mother on sale of orchid. she is paying me in cheque . which I mm utilising on constructing of my house, will I be liable to pay any tax on receipt.

    • Jwala,

      Gift from parents is exempted from Gift Tax provisions and so there will be no tax liability on you. However, your mother will be liable for tax on the sale as per income tax provision.

  67. arif says:

    Can I take 5 to 10 lac in cash or bank transfer as loan from my friend’ s father or friend with proper deed that this amount is loan . will it be tax free. Or suggest some other provision for taking loan or gift from friend.

    • Arif,

      If you are taking a loan then better to have it documented so that you can prove it. Mention clearly on what terms you are taking this loan. Only then it will be treated as borrowing. Gift from friends is taxable and so you will have to pay tax on the amount if it is treated as gift. So identify clearly how you are taking this amount form your friend and do the documentation.

  68. S DASGUPTA says:

    Sir, please help me by clarifying following 2 issues in order to file ITR (AY 15-16):
    1. I purchased a flat 6 yr ago from my salary income/savings and got registered in my wife’s name only (housewife). Now, i am selling the flat and the cost amount of flat is being kept in my wife’s bank a/c only. Now, can she declare the capital gain amount obtained from this flat in ITR.
    2. Is there any provision to declare gift amount in ITR form. If yes, pl specify the ITR forms for individual & HUF.

    REGARDS

    • S Dasgupta,

      1. In general if you buy a house in your wife’s name, but she does not contribute monetarily to the purchase, the rental income from this property will be treated as your income and taxed at the applicable rate. In my view even the capital gains earned from it will get clubbed with your income so the tax liability will arise on you. However I am not very sure on the clubbing of capital gains aspect and it will be wiser to get clarification from a tax expert.
      2. Yes there is a provision of declaring exempted income.

  69. Jeff Thomas says:

    It was mentioned on thé occasion of marriage a gift frm the father in law to son in law is taxable….Kindly clarify as my CA said it’s exempt.

    • Jeff,

      As per my understanding gifts received by daughter-in-law from her in-laws on the occasion of marriage is tax exempted but gifts received by Son-in-law from his in-laws even on the occasion of marriage is taxable. So the tax exemption on the occasion of marriage is only for daughter-in-law and not to son-in-law.

      Rest you can seek view from any other tax expert other than your CA to clarify.

  70. anand says:

    Respected Sir

    I have a situation where the father in law is retired and is giving money to his dauthter in law amounting 14 lacs for buying property. As he is against taking loan for investment.
    I kindly request you to let me know what taxes will be applicable on whom, the daughter in law is also employed.
    Or if he gives it as a intrest free loan to us than what kind of paper work we are supposed to do. Or if he gives it as inherited property to his son what kind of paper work are we supposed to do.
    I will be highly obliged if you could guide me and help me in saving some money.

    • Anand,

      In my view gift given to daughter in law will be tax exempted as the relation falls under the definition of exempted relatives. However there is a provision of clubbing of income which apply to this relationship. Since daughter in law is working so this provision may not apply but i am not very sure on it. You will have to get it resolved form a tax expert as this is a very grey area. Also if gifting do register a well drafted gift deed.

      If a loan is given then it should be very well documented with clear details on the loan amount interest charged and repayment details which in turn should be supported by regular repayments.

      You should seek assistance form a tax expert before you make any decision.

  71. Vijay jain says:

    Sir
    Can I give rs 100000 by bank transfer as a gift to wife of my sonwithout pay gift tax
    Thanks
    Vijay jain

  72. surendra chintalwar says:

    Sir, how to show amount of gift in ITR form which i given to my parents in FY 2014-15.. please reply me as its much important for me. Thanks in advance.

    • Surendra,

      In my view your parents will be showing it as gift received from you if they file ITR. I am not sure how you can show it. You will have to consult a tax expert to know it.

  73. sundar says:

    Dear sir,
    My mother is going to sell ancestral property of my grandfathers by will, by converting the land into sites for an consideration of around 1 crore. please let me know

    1. Whats the capital gain tax and exemptions for it.
    2. As a son, if i construct house on land in my name through that money, is it exempted.
    3. On purchase of land with that money is it exempted.
    4. other ways of exemption.

    Thanks n regards
    sundar

    • Sundar,

      Since its capital gains from land it fall under Section 54F for benefiting from long term capital gains tax exemption.Now there are some restriction under this section like you cannot hold more than two residential properties and the entire sale proceeds need to be invested.

      Secondly you can claim exemption by investing in residential houses. You cannot claim it on investing in land. The other option is capital gains tax bonds but you have a limit of Rs 50 lakh per year.

      In my view you should consult a good tax expert for your queries.

  74. Hemant says:

    Dear Sir,

    We want to buy my father in law house and we have decided to pay some amount on monthly basis up to 20 years to parents in law, So if my father in law will transfer his property to my wife name than what is stamp duty I have to pay, Is stamp duty exempted as transfer of property is between blood relation (my wife and parents in law), I am staying ahmedabad Gujarat. Or any other legal way to transfer the property to my wife name like will or deed than what stamp and other duty is applicable? my wife has 2 sister and 1 brother and they are well settled and don’t want any share in this house, but I want your legal advice on how to transfer this property in my wife so that we can not any legal issues in future.

    • Hemant,

      Stamp duty is payable whether you make a transfer by selling a property or gifting a property. There can be difference in the rate of stamp duty wrt selling and gifting. If the property comes through a Will then there is no stamp duty payable.

      I am not a legal expert so I am giving you my views as per my understanding of the aspect. Its wiser that you involve a lawyer to seek appropriate legal advice.

  75. pmgarg says:

    Respected sir
    Me and my wife both are govt. employees. Can my wife gave money to my mother as gift

  76. Raj says:

    Sir, I wish to gift a commercial shop (immovable property) in Gujarat to my wife. Will it imply any tax? If yes , then at what rate.
    Will there be any registration charges and how much (if any) ?

    • Raj,

      The gift won’t attract any taxability but any income earned from it will get clubbed with your income and so will be taxable in your hands.

      Since you are gifting an immovable property it can happen only through a registered gift deed for which you will have to pay stamp duty.

  77. nareder says:

    Sir I want gift shares worth of 6 lacs to my friend which I am holding from a long period more than 4 years. I will be levied with tax or not. If yes how I have to show in ITR

    • Nareder,

      Gifting to friend is not exempted under gift tax rule. So your friend will be levied with with gift tax as per the income tax provision. There may not be a tax liability on you but your friend will be liable to pay tax.

      However, these are my views and you should check with a tax expert on the actual provisions of gift tax act.

  78. ramesh chand says:

    dear sir,
    I want to trnasfer amount of 25 lac to my wife (housewife) account through cheque,so that she can reinvestment it on fd to avail the FD interest income.

    I am central govt retired person having pension income 22k and paying the taxes for 25 lac.

    is above transfer is taxable?

    • Ramesh,

      In case of husband wife relationship the gifted amount will be non taxable. However, for a housewife, any income earned on the gifted amount will get clubbed with the husband income under Clubbing of Income provisions. So transfer is not taxable but any income earned on the gifted amount will get clubbed with your income.

      You can seek a tax expert advice to have a clear picture of the income tax provisions.

  79. Lalit gupta says:

    Sir, is it possible to open NRI saving account of minor child and transfer the fund overseas to child account so the clubbing of tax can be avoided later on after coming to india?

  80. ashish says:

    How much money daughter can gift to her parents? is there any law for this?

  81. Dilip says:

    If I as a member /karta of HUF and give gift to HUF say 10 lacs
    and HUF invests in FD, tax liability of HUF or clubbing of income
    arises ?

    Pl guide

    • Dilip,

      As per income tax provision if any personal asset is transferred to HUF then the income from it gets clubbed with income of individual. So in my view any income from gift given by members to HUF will get clubbed with members income.

      Seek a tax expert advice to get a clarification on this.

  82. Rita singh says:

    I am housewife and having no out side income. My husband is a regular income tax payer & filing return. out of his saving & amount received from voluntary retirement he gave me on various occasion total 11 lacs for self use and children education expense. I opened bank account & made a fixed deposit. for 10 lacs. as the fixed deposit transaction was 10 lacs once in FY 12-13. I think from bank IT dept has collected info & sent a notice for IT Return. is it taxable? my husband has given me after tax saving. it is like a gift. what to reply to IT dept? is it necessary to take from husband in writing as a gift on plain paper or something else. pl guide me so that I can give proper reply. whether for gift amount house wife have to file IT Return?

    • Rita Singh,

      Gift received from husband is tax exempted as per gift tax provisions. To claim this exemption you need to file income tax return and show it there. Since the amount is high (Going in higher taxation limit) it’s due to this reason you have received IT Notice.

  83. Sunil rai says:

    Sir
    I purchased a plot in July 2002 in 400000 & sold in year 2012 April in 4500000 , I have been forcibly given VRS by my employer in 2004 , but I have not taken & fighting case along with other employee , from then onwards I have been look after by my sons & my expenses are met by the sons only , the money I got after selling of plot is given to them to purchase a plot , sir I want to know that my expenses being met by my sons couldn’t I give money to my sons . Is that money be charged under long term capital gain tax , my sons before that don’t have any property , please advice me While paying tax is it not being considered that I am jobless for last 11 years , fighting case in high court ,Supreme Court for the job & my family & younger children of my family is being look after by my two elder sons with limited income,
    Thanks
    I need your urgent help

    Reply

    • Sunil rai,

      The gains you have earned from selling your plot, you are liable to pay capital gains tax on them. Post tax payment you can very well gift the money to your children. The parents children relationship is exempted from gift tax and so the amount will be tax exempt for your son.

  84. NIRMAL BHATT says:

    GIFT RECEIVED FROM SISTER SON IS EXEMPT, IN OTHER WORD SISTER SON GIVES GIFT TO MASI IS EXEMPT IN MASI HAND/ACCOUNT

  85. NIRMAL BHATT says:

    I ASK GIFT RECEIVED FROM SISTER SON IS EXEMPT, IN OTHER WORD SISTER SON GIVES GIFT TO MASI IS EXEMPT IN MASI HAND/ACCOUNT. IF THE SAME IS NOT EXEMPT CAN MASI DEDUCT BASIC EXEMPTION OF 50000( THIRD PARTY GIFT) OUT OF JEWELLRY GIFT VALUED AT 195000FOR TAX PURPOSE. THANKS

    • Nirmal,

      Gift to Masi is not exempted from gift tax if it is above Rs 50000. There is no formal deduction available in gifting any asset. If the asset value is higher than Rs 50000 the the amount will be liable for gift tax.

  86. saksham says:

    Does cousin included in exempted category by the definition of brother or sister or lineal ascendant or descendant. Kindly explain what does lineal ascendant descendant covers?

    • Saksham,

      In gift tax provision brother or sister are you real brothers and sisters. Cousins are not in this definition.

      In my view A lineal ascendant will include father, mother, grandfather and grandmother, great grandfather and great grandmother and so on. Similarly, the lineal descendant will include not only children and grand children but also great grand children and their children as well. There is no limitations specified in income tax act so the degree of relationship can be to a good extent.

      You should take a view from a tax expert on the exemption for the relationship you are seeking.

    • Saksham,

      A lineal ascendant will be relations such as parents, grandparents, great-grandparents and so on. Lineal descendants will be relations like children, grandchildren and beyond that. In my view cousins will not fall in the exemption category.

      You can get more clarity from a tax expert.

  87. Vaibhav says:

    Hi Jitendra,

    I live in Mumbai with my son and would like to gift him Rs. 10,00,000 (10 lacs). When my son gets the money in his bank account, will he have to pay any tax for this?

    Also what is the tax exempt amount, if any.

    Thanks,
    Vaibhav P

  88. Hi ..recently i have sold property and amount recieved is still in my account as FD. To save income tax on interest earned, can i transfer (lets say) 5 lac each to my father and spouse account. My father is pensioner and my spouse is also working (govt.job)..please advise who will need to pay tax …does my father and spouse both will pay tax on interest earned..

    • Sanjay,

      First i am assuming that you have paid your capital gains tax cause that is your first liability.

      Now coming to transferring funds to your family, both your father and wife will be liable to pay tax on the investment of funds. However, they need to show in what capacity they have received these funds i.e. as income or as gift or as borrowing. If nothing is specified then it may be treated as their income and so the transferred amount may get taxed as their income.

  89. PS Sarma says:

    I am the first owner of an apartment in Hyderabad having purchased it in 1993. Subsequently I have gifted the same to my mother in 1995. She proposes to sell the same now. During the time of property registration, the buyer plans to pay in the form of Demand Draft in her name. In such case, what are the income tax implications (like capital gains) for (1) myself and (2) my mother.

    • PS Sharma,

      Since you have already gifted the assets to your mother in 1995 there will be no tax implications on you. But your mother, being the owner of the property now, will be liable for capital gains tax as per the income tax provisions.

  90. Sreenivas says:

    Hi,

    I have a question. If a NRI son gifts his parents money for their maintainance, the parents then invest that money as FD/TD. Do the interest obtained from this FD taxable? Making a FD is considered as an investment?/

    regards,
    Sreenivas

    • Sreenivas,

      Yes fixed deposit is an investment and the interest earned on it is considered as your interest income. The interest from Fds is added to your income and gets taxed as per your income tax slab.

  91. Varshini says:

    Hi, am a married woman, who wants to buy a car in the name of my husband. Can my father gift amount in my name to be tax free or is it ok in my husbands name? If the amount is tax free, how much would be maximum? If not how much amount will be tax free. Please respond.

    • Varshini,

      Gift received by children’s from their parents is tax exempted for any amount. So gift received by you from your father will be fully tax exempted. Gift received by Son-in-law should also be tax exempted as per the list mentioned under Income Tax provisions. You can get this clarified from a tax expert.

  92. Ram Bhaskar says:

    It is given in Income tax rules that : Gift received from “Any lineal ascendant or descendent of the spouse of the individual is exempted”. This means son-in-law can also receive gift from his in-laws and is not charged for tax. But you mentioned in your article that “gifts received by son-in-law from parents-in-law will be taxed”. This is not to be seen anywhere in the Income tax rules… please clarify.

    • Ram Bhaskar,

      Gifts given to son-in-law on the occasion of marriage are fully taxable and not exempted. That’s what the article has mentioned as per line. Post marriage the gift received by son-in-law may be exempted as per the rule you have mentioned “Any lineal ascendant or descendent of the spouse of the individual is exempted”.
      You can get a confirmation on this exemption from a tax expert.

      • Nikhil Jacob says:

        A person is not a son-in-law before marriage and becomes son-in-law only after marriage. There should some definition of occasion of marriage otherwise both exemptions are in conflict of each other. Going through section 56 of income tax act 1961, I did not see “Gifts received from relatives on the occasion of marriage. Even the gifts received by daughter-in -law from parents-in-law is exempted but gifts received by son-in-law from parents-in-law will be taxed” this anywhere. If true please quote the relevant sections.

  93. Muzaffar says:

    My mother owns a industrial land and the land is registered as M/s.’xyz’ represented by its propritex smt……..
    She wanted that industrial land to gift deed me.As per AP Registration law we had paid the registration fee 1 percent knowing that its is 1 percent only within the family members but the registrar kept our documents pending and issued us a notice to pay another 5 percent stating that the property is in the name of the firm name not in the individual.
    I would like to know the facts to challenge him in the court.please help and guide me.

  94. k umashankar says:

    I am member of a joint family. If we sell our jointly held inherited property and we take our share of the sale proceeds, how the calculation of Incometax would be. Is it taxable pl. clarify

    • K Umashankar,

      In case of jointly inherited property each shareholder will be liable for capital gains tax on his/her share of the asset. For calculation of tax you should consult a tax expert.

  95. madhavi says:

    I want to gift USD 10000 under Liberalised remittance scheme to a friend who is an NRI – he does not file his return in India.
    what are the implications.
    do I have to pay tax on this transaction in india.
    do I have to declare in my return
    what is limit of such a remittance

    • Madhavi,

      You may not have to pay tax but for your friend this will be treated as his income and so will be taxable in India. In my view he will have to file his return and will have to show this amount being received as gift.

      Under Liberalised Remittance Scheme USD 2,50,000 is allowed to remit freely in one financial year.

  96. Gaurav says:

    I am a NRI(USA) and my father is an Indian citizen. My father sold a property worth 2.5crores and paid 20% tax as long term capital gain. The entire balance amount he wants to give me as a gift and i intend to remit from india to USA. Is there any more tax I or HE need to pay here? Thanks.

    • Gaurav,

      Your father is not liable for any more tax. Also, gifts received by children from parents is exempted under gift tax and so you will also not be liable for any tax. You will be able to remit the amount as per limits set by RBI.

      Consult a tax expert before you make any decision.

  97. Anjali says:

    Hi
    My Parents-in law wants to transfer their equity holding to my name worth more than 10 Lacs, will they come in relative categoryor gift tax will be attracted

    • Anjali,

      They will come in the exemption list as gift to daughter-in-law in tax exempted. However, the clubbing of income rule apply here which means any income earned from the asset will get clubbed with your parents-in-law income as per income tax provision.

      Kindly get this confirmed from a tax expert.

  98. Sanjeev khanna says:

    What will tax liability of Donor as well as Donee if an amount in excess of Rs 100000/- is gifted to a female by her maternal grandfather (Nana)

  99. Sanjeev khanna says:

    Are maternal grandparents considered lineal ascendants of the assessee?

  100. Amit says:

    I got 2,00,000 Rs cash prize as “MERITORIOUS AWARD” from PRIVATE COUCHING CLASS for securing good rank in national level entrance exam.

    Is this cash money taxable ( It is awarded by PRIVATE ACOUCHING CLASS) ?

    If yes how much ? and when shall I pay it as I am student & I do not have any income right now ? I am currently an student with stipen of 12k/month from central government. I did not pay income tax uptill now as I am student uptill now.

    I am also intrested to fix deposit this money (2,00,000) . Is it legal for me to earn intrest ?

    PLZ ANSWER

    • Amit,

      In my view this award you have received will be taxable. Awards or scholarships to pursue education are exempted form income tax. This will be treated as your income and based in your income tax slab it will get taxed. You can file the ITR for this year and claim the exemption.

      Rest, get in touch with a CA for computing your tax liability. Its perfectly legal to invest this amount and earn interest.

  101. Shreya says:

    Hello Sir,
    My mother wants to gift Rs 4 lakh to her sister. My question is that how can it be transferred as to who will make the gift deed? Is it advisable to transfer through RTGS or pay by cheque? In which case is a gift deed required. My mother is a housewife and does not earn and my father retired last year. The receipient in this case wants to invest the amount in purchasing a house. What are the tax implications as to who will be taxed?
    Please help.
    Thanks.

    • Shreya,

      A registered gift deed is mandatory in case of immovable properties. If its a movable property like cash, gold etc.. then a gift deed is not necessary but advisable. In your situation it will be preferable that th eamount gets transferred via banking. Additionally your mother can make a gift deed mentioning the nature of gift. However, registration is not mandatory.
      The gift transaction is between two sisters. The relationship is exempted from any gift tax liability and so neither your mother nor her sister will be liable for tax.

  102. NIRMAL BHATT says:

    CAN DAUGHTER HAVING NRI STATUS GIFT MONEY BY CHEQUE TO MOTHER HAVING RESIDENT STATUS. IS GIFT DEED NECESSARY IF YES THEN WHAT WILL BE THE FRANKING VALUE OF GIFT DEED.

    • Nirmal,

      Yes NRIs can gift to their parents and the amount is exempted from gift tax since the relation is exempted. Ideally movable assets do not require any gift deed and transfer of the amount via cheque will be sufficient.

  103. James says:

    My father purchased a property in 21/5/2010 worth of 283000 and he registered the property to me through sales deeds not through gift, in sales deeds property value is written as 718000 on 30/4/2013. Income notice has come regarding capital gain tax. Is there any way to prove that there is no money transferred in this case and it’s been registered to son by father and if so will it save the capital gain tax?

    • James,

      What your father has done is a transfer which is counted as selling and buying of the property. Due to this there is a capital gains tax liability which falls on your father. Since the transfer has already been registered you cannot avoid the capital gains tax.

      It’s better that you seek advice from a tax expert.

  104. Ramnath says:

    I am Swamiji I am receiving money from my devotees I kept money in my SB account whether I have pay tax Pl give reply

  105. Need advice says:

    Dear Jitenderji

    I want to gift my brother cheque. Do I need to make a gift affidavit. He would require this to file IT returns. Do we need to register the gift affidavit and pay stamp duty. Do we need to make the gift affidavit on stamp paper or plain paper.
    Please advise.
    Thanks

  106. NEHA BHATIYA says:

    My Client has a long term capital gain of Rs 8 Lakhs by selling the immovable property.
    She has been given a gift of property by her mother. Can she claim benefit u/s 54 for sum spent on registration etc paid by her ?? (normally such expenses are to be borne by donor).
    Registartion and Stamp Duty paid by My client is Rs 6 Lakhs

  107. Ankush Modi says:

    I live in nepal and want to gift my sister residing in India. Can I give the gift through cash? if not how can i transfer the money to her account considering i dont have any account in india. Also can i gift a gold necklace and what proof i or she require to show this as gift?
    Thanks in advance

    • Ankush,

      A cash transfer via bank account is very well treated as a gift and there is no deed required for movable assets. You can do a money transfer into her account and keep the details as proof if the transaction. Gifting a gold necklace do not require any written proof. Mere transfer of asset from your hand to her hand will be treated as gift. Still you can keep a declaration with you that particular amount or gold necklace has been given as gift to your sister.

  108. Ravindra Singh says:

    I wants to gift any financial investment in the name of my brother’s daughter.will it is possible and if possible then want know the scheme available.

    • Ravindra,

      You can gift multiple financial investments. Fixed Deposits, Mutual Funds, Gold etc..If its a gift for her future and there is a time horizon of more than 10 years when she utilizes it then mutual funds will be a good choice.

  109. Vishal says:

    Can i receive cash gift of Rs 1000000/- from my wife and my mother in law for my business . Also tell me the clubbing provisions implication

    • Vishal,

      Yes, your spouse and your mother-in-law can gift cash to you. In my view, there will not be any clubbing provision in case of gift from your mother in law. However, the clubbing provision does get applicable in case of husband-wife relationship. But to what extent clubbing of income apply and how, you will have to get this clarification from a tax expert.

  110. K P Verma says:

    Sir, I would like to know how will the receiver of gift from blood relation account for the sum/gift received in his income tax return.
    Thanks
    KP Verma

    • K P Verma,

      In my view If it’s a gift received from relatives who are exempted under income tax provisions then you don’t need to show it in your ITR as the gift is not treated as income. Else if its taxable then it will be treated as Income from other sources.

      you can check it with any tax expert.

  111. Varun jain says:

    Can my huf receive rs 50000 each from my father, mother and my friend as a gift in financial year without paying tax
    Varun jain

  112. Varun jain says:

    Can my huf receive rs 50000 each from my father and mother and my friend as a gift in financial year without paying tax

  113. kapil says:

    My mother wants to gift commercial shop to her brother.I think their will be no tax liability .
    But after gift received and deed is registered then any rent received by her brother, who will pay tax on that income

  114. shubham says:

    A non-resident (NRI) son ,had given money to his resident father through joint account b/w him and his father and father purchased house property on such amt on his own name

    My Query is , What shall be the consequences on the part of non resident and on the part of his father, where NRI son doesnot even has the PAN no. and the father did had PAN no. and regulary files his own return

    • Shubham,

      As per income tax provision, NRI children can gift cash to their parents and this gift is tax exempted. Also, son to father does not fall under Clubbing of Income provisions and so any income on the gifted amount will be treated as fathers income.

      So in my view there will be no tax liability from the gift on NRI son or his father. You can confirm this from a tax expert.

      • shubham says:

        Thanks For the same sir.

        1. But are they require any gift Deed as the money is already used to purchase house in father name ?
        2. As well as son does not even has PAN no. so what they did (i.e purchased house on such income in fathers name) is correct or not ?
        3. And can they show the source (salary income of son) while buying house ?

        NOTE — Here salary is directly credited to the Joint account (Account B/W – Son and father)

        Sir ,kindly Guide me….

  115. jayant says:

    i want to give every month 80000 rs to my father and mother if they want to invest in rd of fd intrest eran by them is clubing with my income iam in 30 % brackect

  116. Nehal says:

    i have given to my father of Rs. 100000/- , whether it is taxable in hands of my father or not.

  117. manish says:

    Sir,
    After my father death the property has automatic transferred to my family member (5 person) proportionally, my family member can gift me those property and what bear of the cost to me or any tax sir

    • Manish,

      Yes, your family members can gift the property to you. Since its an immovable property the gift has to be done through a Registered Gift Deed. In this case , stamp duty will be payable. On taxation, since it’s a gift from blood relatives (Mother, Brother, and Sister) there will be no tax liability on you or family member who is gifting. You can check the exemption list of relatives to confirm the status.

  118. laxmi says:

    Can I gift money to my own sister. If so, is there any need for gift deed that has to be followed. Please let me know at the earliest.

  119. laxmi says:

    Some more clarification whether gift can only be cash or shares and need for gift deed

  120. Vijay kumar jain says:

    My huf receive rs 50000 each from my father and mother they are not huf members can I pay gift tax or amount exempt from gift tax
    Thanks

  121. suresh says:

    Please guide me on the way i can recieve 30L help from my father(which is his saving) to buy a property for my own purpose.

    • suresh,

      your father can gift the amount to you. Since it’s a father-son relationship the gift received is exempted from gift tax. Post that you can then invest the amount as per your wish.

  122. laxmi says:

    what if I want to purchase some shares in my wife’s name by transferring money to her account and whether the clubbing provision is attracted for the dividends received also

    • Laxmi,

      Clubbing income provision is applicable on any income received by your wife. Since dividend is counted as income it will also fall under Clubbing of income provision. However, considering there is no tax on dividend received from equity shares it may not impact much.

  123. Rohit Jalan says:

    Hi Jitendra,
    I had given amount 2 Lacs to my father in law through net banking. Now he wants to return this money in form of cash. If I deposit this money to my account later, then it will be considered as source of other income.

    Can I deposit this money to my wife’s account so that it will be considered as gift ?

    Other option:
    If same amount is deposited to my wife’s account in form of cash by her Grandfather.

    Could you please help ?

    • Rohit,

      Although, there is no restriction on gift given in cash it’s advisable that the transaction happens through net banking or a cheque which establishes a proof of the transaction. Yes, your father-in-law can very well give gift to his daughter i.e. your wife. But as I said the mode of transaction should be taken care of.

      Rest, difficult for me to dive deep into past cases pertaining to these. Involve a good CA.

  124. Rahul says:

    Hi Jitendra,

    I have a FD of 30 lakhs, which due to my income bracket is incurring 30% interest.

    If i give a interest free loan of 30 Lakhs to my wife, and she makes a FD in her name, will it be tax free? (Assuming total interest income < 2.5 Lakh per year and she submits form 15 G)

    Thanks,
    Rahul

    • Rahul,

      Any transaction done for avoiding tax is not good. The income tax department can catch it with such a high-value transaction as it gets monitored. Instead, You should consider tax efficient investments where you can reduce your tax liability on the earnings from investing the surplus.

  125. laxmi says:

    sir, I need to know one more thing that is I am holding shares of a particular company for the last 5 years when I transfer those shares how the LTCG/STCG will be calculated in the hands of my sister and what will be her acquisition price (current rate at the time of transfer or zero because they were received through gift). Kindly let me know at the earliest.

    • Laxmi,

      When you transfer the shares it will be done through your Demat account t your sister demat account. So in actual you will transfer the numbers and not the value. Since its a gift there will be no gift tax liability on your sister at the time of transfer. It’s only when she sell those shares the Capital Gains Taxation will arise.

      You can get this confirmed from a tax expert.

  126. shirdev says:

    Dear Sir/Madam,

    1. Does gift tax exemption include gift from step brother/ step sister?

    2. Does gift tax exemption include gift from spouse’s step brother/ step sister?

    kindly let me know

  127. Nivesh Somani says:

    How many times a father can gift son in a particular financial year?

  128. Nirmal Bhatt says:

    Can Resident indian (Mother) gift Listed Equity shares to Non resident indian ( Daughter)? if not then please suggest alternate for the same.

  129. SATHISH KUMAR says:

    Sri.Jitendra P.S. Solanki
    Sir. It is regarding Gift Tax in India. I would like to gift some amount to my Mother-in-law. If she in turn gifts the same amount to my Wife, will I attract clubbing of income. Please clarify.

  130. SATHISH KUMAR says:

    Sir,
    It is regarding Gift tax in India. I would like to gift some amount to my Mother-in-law. If she in turn gifts the same amount to my Wife, whether I should consider clubbing of income. Please reply.

    • Satish Kumar,

      In my view, the gift to your mother in law is exempted from gift tax and the income she earned from it will be treated as her income.Further gift by her to daughter will also be exempted from gift tax. Clubbing of income will not arise here since it’s a gift from her mother.

      Having said that good to have a gift deed to substantiate your claim in future. You should also consult a tax expert on this.

      • SATHISH KUMAR says:

        I am attaching a format for Gift Deed on PLAIN PAPER. Will it be sufficient ?.
        GIFT DEED
        KNOW ALL MEN BY THESE PRESENTS that I, ………….., S/o………………….., r/o …………………………….., transfers voluntarily, cash of value of Rs………. (Rupees……..Only) to my mother-in-law …………..(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.
        The said gift was made out of my retirements benefits like PF, gratuity, etc., and none of my successors / heirs shall ever dispute or call in question the said gift amount. The gift was made by me unconditionally, without any expectation whatsoever.
        In witness whereof, I have executed this deed on ……………., 2007.
        Witness: 1)………………… 2)……………….
        DONOR: …………………… (PAN No………………..)
        DONEE: …………………….(PAN No……………..)

  131. SATHISH KUMAR says:

    I am attaching a format for Gift Deed on PLAIN PAPER. Will it be sufficient ?.
    GIFT DEED
    KNOW ALL MEN BY THESE PRESENTS that I, ………….., S/o………………….., r/o …………………………….., transfers voluntarily, cash of value of Rs………. (Rupees……..Only) to my mother-in-law …………..(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.
    The said gift was made out of my retirements benefits like PF, gratuity, etc., and none of my successors / heirs shall ever dispute or call in question the said gift amount. The gift was made by me unconditionally, without any expectation whatsoever.
    In witness whereof, I have executed this deed on ……………., 2007.
    Witness: 1)………………… 2)……………….
    DONOR: …………………… (PAN No………………..)
    DONEE: …………………….(PAN No……………..)

    • Sathish,

      For me the format is fine and on a plain paper should meet the objective.

      Still, you should consult a legal expert for verifying this.

      • SATHISH KUMAR says:

        I am asking a tricky question. Myself and my brother have some land jointly owned. But, he likes to get the full land, and he is ready to pay me.
        Can I give my portion of land to him as Gift, at the same time, Can he pay the value to me as Gift, which could be done on different dates.
        Is it allowed under Income Tax rules.

  132. harikannan vs says:

    Hi ,
    I am receiving cash Rs 100000 each month from my father’s brother as we need to pay our debt . so totally it will come around 1200000 per year. he will give it for another year also.
    the debt i am paying back is through my account to another person account who has given us the money when we were in need.we dont have any agreement written for this debt.
    So i am tax exempt for this ?
    the person who is getting money from me for paying back debt is tax exempt ?

  133. SATHISH KUMAR says:

    Thank you all.

  134. srinivas s says:

    i am in receipts retiral benfit of rs 30 lakhs, beside a decent pension for me and my wife.
    can I gift 15 lakhs to my 2 children.
    what is the tax implication for me or my chlidren

  135. Barnali says:

    Hello sir, Iam an NRI and have transferred around 3-4 lakhs to my fathers account this year for purchasing a property for me in India. Now my father is noticing too much tax cut off in his earnings this year compared to last year. Can you please let me know if the amount that I transferred to my father was taxable ? If No, then does he need to specify the relationship in any IT form? Please let me know. Appreciate your efforts in helping people!

  136. Barnali says:

    Hello sir, Iam an NRI and I have transferred around 3-4 lakhs to my fathers account this year for purchasing a property for me in India. But now my father is noticing too much tax cut off from his earnings this year compared to last year. Can you please let me know if the amount that I transferred to my father was taxable ? If No, then does he need to specify our relationship in any IT form? Please let me know. Appreciate your efforts in helping people!

    • Barnali,

      Gifts, including cash and immovable property, from a relative are not liable to tax in the hands of the recipient or in the hands of the person giving the gift. So in my view your father will not have any tax liability on the amount transferred by you.

  137. SATHISH KUMAR says:

    I am asking a tricky question. Myself and my brother have some land jointly owned. But, he likes to get the full land from me, since, it is our family property.
    Please clarify whether Can I give my portion of land to him as Gift, at the same time, Can he pay the value to me as Gift.
    Is it allowed under Income Tax Rules.

  138. ANIL KUMAR says:

    I am asking a tricky question. Myself and my brother have some land jointly owned. But, he likes to get the full land from me, since, it is out family property.
    Please clarify, Can I give my portion of land to him as Gift, at the same time, Can he pay the value to me as Gift.
    Is it allowed under Income Tax Rules.

    • Anil Kumar,

      A Gift of Immovable Property without consideration i.e. without any money is tax exempted for relatives. However, in my view the same will not hold if any money is being paid for the gift.

      I will advise you to meet a tax expert and get more clarification on this aspect.