Income Tax on Gifts

Income Tax on Gifts

Income Tax on Gifts

We all love receiving Gifts. Certain gifts received from our relatives are tax free. Gifts can be used as effective tax planning tools.

Detail provision on Gifts and their taxation is discussed below:

 

1. What is the current law on gifts tax? Priti Mittal, Jaipur

Any gift received in cash or kind exceeding Rs.50,000 or purchase of movable or immovable property for inadequate payment is taxed in the hands of recipient as “income from other sources.”

2. My Father has gifted Rs 100,000/- ? Do I have to pay tax? Sonia Agarwal, Hyderabad
Gifts received from specified relatives are exempt from Income Tax, and there is no upper limit also.

Father is included in the definition of relative, therefore amount received from him would be tax free.

3. Who is a relative in the eyes of the law? Prashant Gupta, Faridabad

A relative can be any of the following:

  1. Spouse of the individual
  2. Brother or sister of the individual, spouse or of either parent
  3. Lineal ascendants or descendants of individual or of spouse
  4. Spouse of person referred to in scenario 2 and 3 above

4. What are other conditions for receiving Tax-free Gifts? Surbhi Ghosh, Gurgaon

If you receive a gift on any of the following occasions, that gift will be tax free in your hands.

  • On occasion of the marriage of the individual
  • Under a will or by way of inheritance
  • In contemplation of death of the payer
  • Any local authority, trust or university etc.

5. What else do I keep in mind when I Receive Gifts? Vineet Sehgal, Delhi

While receiving a gift, its always in the interest of the donee (i.e., the recipient) to get a gift deed signed by the donor. This can always help support the case that the item was indeed a gift and can be used as evidence in case of future litigation/investigation by the Income tax department.

6. Can I gift Rs 1,50,000/- to my Husband or wife? Puneet, Noida

Yes you can gift to your husband or wife.

But, Please be careful that if your spouse invest this money and any gain like interest, Rent etc is received it would be clubbed with your income.

7. I have received Rs 45,000/- From my friend ? Is it taxable? Rakesh Sinha, Bangalore

No, since this is below, Rs 50, 000, it is not taxable.

However, if in the same tax year, you receive another gift of Rs 5,001. Now the total value of gifts received by you is Rs 50,001, and beyond the tax free limit.

Now the entire amount will be taxed as “income from other sources” in your hands.

8. Gift to Fiance is it taxable? S. Shanker, Hyderbad

If you have given gold necklace worth Rs 1,00,000 to your fiance. This entire amount is taxable in her hands, as jewellery (moveable property) above Rs 50,000 is taxable in the hands of the recipient.

In this case she is still not your wife, but only fiance, so the gift is taxable.

If you were married, and would have given the gift then no incidence of tax would have arisen.

9. What all are considered moveable and immoveable property? Prasenjit, Kolkata

The following are specifically defined as moveable or immoveable property:

  • Land or buildings
  • Shares and securities
  • Jewellery
  • Archeological collection
  • Drawings
  • Paintings
  • Sculptures
  • Any works of art

10. I have received Rs 1,00,000/- from my Father in law? Is it Taxable? Kamal Das, Noida

Since Father in law falls under definition of relative it is not taxable. But please make sure that amount he is giving to you , has been declared by him in his Income Tax Return

11. I want to Gift a House to my daughter in law. Is it taxable? Mohit Vaidya, Gurgaon

Daughter in law, falls under the definition of relative. Hence it is not taxable.

But, Please be careful that if your daughter in law gets House rent from this property and it would be clubbed with your income.

195 Responses to Income Tax on Gifts

  1. Uday Agashe says:

    I want to give a car to my friend as a gift worth Rs 10,00,000/- what will be the tax on it & how it will be recover.

  2. YOGESH JAIN says:

    IS GIFT FROM SON TO FATHER IS TAXABLE ?????

  3. RAJENDRA V I says:

    If my father gives gift Rs5 lakh to my wife or to my son whether it is taxable to collector or not. please note my father is a partner in firm and files a I T file.

    • Income Tax Buddy says:

      Gift by grand pa to his grandchild is tax free in hands of reciever. Also Gift made by Father in law to daughter in law is tax free.

    • subhash chandra says:

      NO,it is not taxable,but father should gift from his own a/c and not as partner of firm.

    • Umesh Garg says:

      Gift given by father-in-law to his daughter-in-law is tax free in the hands of receiver, but income earned on that amount by DIL, will clubbed in FIL Income U/s 64(1)(vi) of the Income Tax Act, 1961.

      • Tax Dost says:

        You are right, gift by father in law is tax free in hands of daughter in law. Income earned by daughter in law will be clubbed in hands of father in law

  4. A K Sangal says:

    My two sons who are settled abroad have sent me funds of US$ 10,000/= each, for investing in a house which I am buying in India. Will it be counted as gift and attract income tax. If yes, how much.
    ashok

  5. Nitin says:

    Can my father or I gift Rs 100,000/- every year to my wife and will it tax free for my wife.
    If my wife invests that money in PPF, will be interest on PPF be clubbed in my/father income.

  6. Sam says:

    my wife recived 45,000$ after her grandma passed away last year i was told theres a one time thing were she can gift it to me and not pay taxes on it

  7. Rekha says:

    i am a salaried person i want to know can i gift cash to my mother in law & what is the limit.

    • Income Tax Buddy says:

      There is no limit on gift made to your Mother in law. Full amount of gift is tax free in hands of your mother in law

  8. pk says:

    I friend transferred 1.8 lakhs to my account has a marriage loan, is this taxable and how much should i pay…

  9. Manmohan singh says:

    read this trend & find it very useful.
    I have a doubt.
    my question is my wife is working & filling income tax return. If i pay Rs 100000 to my wife, then it is tax free amount in her hand. can i also reduce this amount from my net income during filling of income tax return to get the benefit of tax free amount.
    please guide

    • Income Tax Buddy says:

      Gift received by your wife is tax free in her hands. You will not be able to take any income tax benefit for file filing your tax return.

  10. Achin Bansal says:

    If I will get a gift from my sister. It would be taxable or not?

  11. Manmohan singh says:

    Thanks a lot for valuable information

  12. DINESH SHETTY says:

    Is Gift made by Daughter in law to Mother in law tax free ?

  13. HEMANT SHAH says:

    GIFT TO MAMA IS TAX FREE?

  14. saurabh goyal says:

    Hi
    I transferred money to my mother account ,I want to know what if she invest this money in equity with her name and makes profit . Is this profit made add to my taxable income??

    • Income Tax Buddy says:

      Any Income earned by your mother will not be clubbed in your income. Clubbing provision apply only in case of spouses and Daughter in law

    • subhash chandra says:

      You should gift the amount to your mother,no tax.Income of profit will be the income of your mother.

  15. Nilesh Patel says:

    i given 100000/- to my wife as gift,on this amount she received interest at the end of the finacial year
    so my question is recieved interest is my income or my wife’s income?????

    • Income Tax Buddy says:

      Gifts given by you to your wife is tax free, however interest income recd from such gifts will be clubbed in your income.

  16. Manish says:

    Is money (loan/gift) received from brother in law tax free. Regards, Manish

  17. MMoorthy says:

    I am not able to understand the concept of who is to pay tax while gifting to another person.

    I need your advice since i am not able to get correct advice on the following three points.

    (point 1) I want to make a gift of Rs 6 lakh to my grandmother who is aged 82 years. I am a proprietor of my own consultancy firm. In this case please tell me whether my grandmother has to pay tax for Rs 6 lakh or whether i should pay tax for the Rs 6 Lakh.

    (point 2) If my grandmother invests this money of Rs 6 lakhs in bank fixed deposit and earns interest then who has to pay tax on interest received.

    (point 3) If my grandmother simply keeps this Rs 6 lakhs in her savings bank account then whether she has to pay tax.

    I will be thankful if you can clarify this to me please.

    • Income Tax Buddy says:

      MMoorthy, Recipient of gift has to pay Income tax. In your case gift to your grand mother is not taxable since she falls under definition of relative.
      B) on interest earned from Fixed deposit, she has to pay income tax and show in her Income tax return.
      C) on Simple interest in saving account if Saving interest is less than Rs 10000/- she don’t have to pay any tax. However if interest earned over Rs 10k she has to pay tax.

      • MMoorthy says:

        Sir, thank you for your clarification but i have one last question. i request you to be kind enough to please clarify it for me.

        In my case the Rs 6 lakh i give as gift to my grandmother can i show it as expense in my income tax return. Thankyou

  18. Ravi says:

    Why is everyone enquiring with the same question which is answered by the Author already at the top of the page? Please question what is not covered already that helps instead of seeing the same query!

  19. shab says:

    my mother is selling her land (she got from my father) and giving us payments received as gift. is it taxable for us or for her?

    • Income Tax Buddy says:

      Sale of Land by your mother is subject to capital gain and tax has to be paid accordingly. However amount given to you by your mother as gift is tax free.

  20. Ratan says:

    Please Clarify me I want to make a gift of Rs 2 lakh to my wife who is aged 39 years. I am a salaried person . In this case please tell me whether my wife has to pay tax for Rs 2 lakh or whether i should pay tax for the Rs 2 Lakh.

    • Income Tax Buddy says:

      Gift given by you to your wife is tax free, and no one is required to pay any tax. However do keep in mind that income your wife earns from this gifted money will be clubbed in your hands

  21. vkram says:

    my son is 23 yrs old.I want to gift 2lac rupees.My son wants to start a new bussiness and my son have no other income.The gift money received by my son is taxable or not?Is the gift money given by me shown in my annual return?

  22. Rajendra says:

    While replying MMoorthy’s question on “February 27, 2013 at 8:13 am” you wrote : “B) on interest earned from Fixed deposit, she has to pay income tax and show in her Income tax return.”
    … and replying Ratan’s question on “March 7, 2013 at 8:01″ pm you wrote :
    “However do keep in mind that income your wife earns from this gifted money will be clubbed in your hands”
    Pl clarify about the tax liability on income earned on Gift during the financial year of gift and on subsrquent years.
    Also tell me about clubbing provisions in respect of non earning wife and non working major daughter.
    Thanks!

    • Income Tax Buddy says:

      Rajendra,
      Interest earned by grand ma from gift is not clubbed in your hands. However interest earned by your wife or minor child from gift amount is clubbed in your hand. Interest earned by major daughter will not be clubbed in your hand

  23. Minku says:

    I am salaried person. I want to gift 2 lacs rupees to my mother. She is not earning. In that case, 2 lacs rupees will be deducted from my total taxable income. in this case, Should I pay tax on my left taxable income (Total – 2 lacs)

    • Income Tax Buddy says:

      Minku, Gift made by you is allowed as any deduction from your total income. you will not get any tax benefit by making gift to your mother

  24. saravanan says:

    Hello sir
    I have a doubt if I give 5 lakhs to my wife’s brother by lending via jewel loan in bank is taxable
    thanking you

  25. Vishal Gupta says:

    If a gift is given by a person to son of his daughter (grandson) who is a minor. is the income taxable to parents of the recepient?

    • Income Tax Buddy says:

      Gift received by minor is non taxable. however Income earned from such gift in minor name is clubbed and taxable in parent’s income

  26. Pradeep Jaju says:

    Hello Sir,

    I had gifted money to my dad on 3rd Nov 2012. However i got to know that it is better to prepare gift deed for the amount gifted. (Although deed is not required for moveable property)

    Can i take stamp paper dated today and prepare deed stating that gift was given on 3rd Nov 2012. Will deed be valid? If not what is the other option i have to make proper documentation for the amount gifted. Pls Advice.

    • Income Tax Buddy says:

      Pradeep, No gift deed is required, if you have given the gift by way of cheque.

      • Pradeep Jaju says:

        Thank you. Gift was given by Cash. Also i was suggested that it is better to have a deed (although it is not required by act). So my query is Can i take stamp paper dated today and prepare deed stating that gift was given on 3rd Nov 2012. Will deed be valid? If not what is the other option i have to make proper documentation for the amount gifted. Pls Advice.

  27. HKP says:

    can i gift jewellery to my wife ? will it be clubbed can by father git jewellery to me or my wife?

  28. rupesh raut says:

    if my uncle ( Mothers brother ) want to give gift as a 400 Sq. Mtrs. property including old house to me, Value mantioned on stamp paper is Rs. 12,00,000/- ,

    a. it it taxable to uncle. (65 Yrs.)
    b. it it taxable to me. (35 Yrs.)

    Please reply me.
    thanks.

  29. Jagan says:

    My father-in-law sends me money as gift to my wife, who is living in USA. Will my father-in-law have liable for any taxes on the gift amount?

  30. sethupathy says:

    I have given to my major daughter who is a medical student and also my son who is abroad to her. She has put it in FDS of bank. whether the interest she receives which is below taxable limit is taxable and whether I have to add in my income the interest received. IN new form 15g where it is to shown Regds

    • Income Tax Buddy says:

      Since your daughter and son are major, interest income is not required to be added in your return. You should file separate return for them.

  31. Dhruv Sachdeva says:

    Hi.I want to know that if i give my father Rs 45000 as gift.Can i show that in my income tax return to get Rebate or any tax benefit on my part.

  32. Dhruv Sachdeva says:

    Hi. I want to know that can i show my car insurance premium in tax rebate.

  33. Gladwyn says:

    My mothers sisters son (i.e. cousin) who is an NRI wants to give me interest free loan of $100000. Is any notional interest taxable in my hands or under his hands.

  34. prasanth says:

    A friend from USA sent me 1,07,000 rupees as a gift through Bank… should i need to pay any Tax? how many times we can receive gift from Friends in a year? is their any limited Amount?

  35. Suresh Abichandani says:

    Father got a property as per will.
    Father construct a building.
    He gifts flat to his daughter.
    Daughter is salaried and tax payer.
    Will the father or daughter have to pay tax.
    If daughter sells the flat will that amount be considered as tax free.
    If amount is taxable, is it capital gain or additional income.
    Can the daughter invest in another property to save tax.
    Kindly guide.

  36. Jiya says:

    My father-in-law and mother in-law are the joint owner of a flat, they want to sell that flat and gift that amount to my husband and me for purchasing a new flat which will be on my name.
    Please advise :
    A) Is there any tax to be payed if the new house is on my name & my husband is a nominee.
    B) Do my father in-law has to pay any tax for giving me the amount?
    please suggest…

    • Income Tax Buddy says:

      Your Father in Law and Mother in law, will have to pay capital gain on sale of flat.
      a) No tax is to be paid if new house is in your name and your husband is nomineee.
      b) There is no tax payable if they transfer any amount as gift to you or your husband.

  37. ALAKA SHAH says:

    1) i have gifted the money in form of cheque to my mother who is senior citizen . Is the interest income earned on FD in name of my mother is taxable in hands of me or my mother?
    2) what is the limit for gift to be given to my mother in form of cheque? is it necessary to prepare the gift deed?

  38. Ananth says:

    Hi,

    I want to credit by cheque/cash to my Mother SB account to open a FD with that amount, she is house-wife.

    I want to know
    1. will there be any TDS for the amount recieved by mother to SB account to open FD from me thru cheque/cash?
    2. will the interest earned by FD will be clubbed to my income?

    Thanks

    • Income Tax Buddy says:

      1) If your mother income is less than Rs 2 lac ( ie below exemption limit you can submit form 15G ) and no TDS will be dedcuted.
      2) No Clubbing of interest in case of gift to mother.

  39. Raghava says:

    Dear Sir, My wife’s brother wants to give me few lakhs as loan and would like to transfer it to my account online, as I am in need of some money. I wish to know the following:

    a) Since he is my wife’s brother, I am not liable for Income tax on the amount I recieve from him. COrrect?
    b) Just to be on safe side, is it ok if we get into a loan agreement on a plain paper and myself and my wife’s brother sign it?
    c) Or, only if he transfers that amount to my wife account its tax free?
    Pls clarify. I read that Spouse and Spouse’s brother/sister are considered relatives.
    Thanks.

    • Tax Dost says:

      Loan has no income tax implication. To avoid litigation in future you may make a loan agreement on plain paper.

  40. Sorav says:

    Hello,

    I’am an NRI and my parents are financially dependent on me, i want to help them with a regular source of income, in case i give them some money to invest further, will there be a tax on the gift amount? how will the income( interest etc.) be taxed? Also, are there any limitations on give and take of financial gifts between parent and child? Just in case they gift me back a portion from the amount i gave them as a gift.

    Thanks

  41. Gopichand Pai says:

    Hi,
    I won a Samsung Tab2 from ICICI bank. ICICI deducted Rs5399 as the gift tax(30% of Rs17999). I can see the same details on my 26AS form. I have the following questions
    1) Should I show Rs17999 as income from other sources in ITR1 form? If yes, where should I show it?
    2) Where should I list this in TDS section of ITR1? Will this be under SCH TDS1(Tax deducted at source from salary) or SCH TDS2 (tax deducted at source other than salary)?

  42. shivam says:

    if i gift 2 lacs to my friend then
    1. who will pay tax
    2.how much tax is to be paid

  43. Abhinav Srivastava says:

    My Father has a property(present value is 638000 Rs.) which he wants to gift to her sister-in-law. If she sells this property then capital gain arising on such property will be taxable in the hands of my father or her sister-in-law. Te property was purchased in year 1980 for Rs. 15000. Kindly reply to my query as soon as possible.

  44. Naveen says:

    I have given my father 8 lakh rupees for buying a house. I know that my father do not need to pay any tax on this. My question is that though the amount given by me would not attract any tax for my father but would it be added to total income of my father for that particular year. Income of my father is around 1.5 lakh annually so if we show in ITR that he received 8 lakhs from me, would his total income be 1.5 lakhs or 9.5 lakhs. In what category 8 lakhs would be mentioned.

    • Tax Dost says:

      Naveen,

      Gift received from relatives is not taxable. This can be showed in your income tax return in exempt income section

  45. Neena Sparkl says:

    Hi,

    Thanks a lot for your excellent article and responses.
    I have some queries. Could you kindly answer?

    1. if my mother who is a senior citizen receives an amount equivalent to 3 Crore in her Bank [as wire transfer from US] , would this be taxable ? Or only the interest amount generated on 3 Crore is taxable?

    2. The gift to my mother – Can it be done only once or I can do it any no: of times ?

    3. If she buys a property with that amount, would she have to pay TAX?

    Reg
    Neena

    • Tax Dost says:

      There is no limit of gift received from relatives.

      Interest income received by her will be taxed as her income and she need to file income tax accordingly

      In case she purchase property there is no tax. but if in future she sell the property then capital gain will be applicable and taxed accordingly

  46. rashmi says:

    If I gift my mother who is non -earning member ,say a 1Lkh Rs. Will that amount be exempted from tax from my income? and under which Section it will fall?i mean 80c itslef or different?

  47. pavan says:

    I have gifted 1L rupees to my wife on her birthday. As per income tax act, can I deduct this amount from my taxable income, so that I would pay less tax?

  48. manoj says:

    i want to ask one thing for my father,
    he is retired govt. employee….he has income only from pension and interest on fixd deposite and his income comes under taxable slabs…can he got any tax deduction benifit if he made gift to any relative…..

  49. shameel says:

    I have some questions

    1. I am working in a private company and I would like to support my brother every month from my salary for his basic expenses like rent , food and medicine who is diabetic patient and does not have proper income. So my questions is whether the amount which I am giving is tax free or not.

    2. Please guide me how to proceed with this to get tax

  50. mohit says:

    My father paid an amount of Rs.4lac for puchase flat which is in my name should i declare as gift in my books of account.suggest me .

  51. tim says:

    May I receive a gift of $10,000 or more from a friend in the United States and give it to a charity I am starting as long as I pay income tax on the gift?

    • Tax Dost says:

      Tim, if you really want to donate , then it is better to ask your freind to donate directly to charity, instead of making transfer to you, this way instead of paying taxes full amount will be used for charity

  52. Siby Kurian says:

    I my aunty (My dad sister) wanted to borrow 1,00,000 rupees from me and said she will repay it in two month without interest. Is there any tax on these transactions?

  53. rohit says:

    Sir,

    My father has given a sum of Rs.3.25 lakhs to my wife to purchase a car. Now we have purchased a car from that money in my name. Is there any tax implication for this on me or my wife.

  54. adi says:

    my mother’s mother wants to gift me a TV worth Rs 100000. I conduct a proprietor business. so whether the gift would be taxable in my hands?

  55. Ramit says:

    Sir, If i give some amount say 3 lac to my mother
    Can I show it as gifted amount in my income and get some tax rebate…??
    I mean these 3 lac wont be taxable to my mother for sure, but m I also eligible to have tax exemption on it, if so what is the procedure

  56. P.RAMA NARESH says:

    what are kinds of gifts? and what are the rates of tax imposed on it, my dad said gift tax is 12.5%. please explain in brief

  57. Satindar says:

    I am a retired person. On retirement I have received approximately rupees 80 lakhs which includes, provident fund ( 40 lakhs); gratuity (10 lakhs); commuted value of pension (20 lakhs); leave encashment (10 lakhs). Entire amount i have put in FD. How to save income tax ? Can I gift 30 lakhs to my daughter who is 19 years old student? If so , does she have to pay income tax on it ? Secondly , my wife is a teacher, earning approximately 1,20,000 per year.She files her income tax return . Can I gift her 30 lakhs ? Does she have to pay income tax on this or do I have to pay income tax ?

  58. Sunita Gupta says:

    I am housewife, My daughter is working abroad she wants to gift me Rs. 10,00,000/- this year (FY 2013-14) is it taxable for me.

  59. GAURAV GAGNEJA says:

    If Any Body Receiving The Gift In Cash Will Mention It In Income From Other Sources Head, But Who Is Giving The Gift Will Mention In Which Head……? Plz Tell The Procedure

  60. Geetanjali says:

    My spouses grandmother wants to gift me 10,00,000 Rs. is it taxable?

  61. Ramkrishna Bhat says:

    Please clarify if an individual wants to gift shares to his niece ( i.e. daughter of his wife’s sister), whether it will be taxable in recipient hands.

  62. asheesh kumar rastogi says:

    My question is below:

    I am paying my younger brother B.Tech Course tuition fee (2 LPA) in two equal half yearly payments.

    So I want to get income tax benefits for this tuition fee payment.

    As i can’t show in tuition fee section under 80C.So

    1.) Can I show like, i am giving this amount to my brother as gift,and he is paying his tuition fee with this amount,and i get tax benefits.
    His age is 18+ now,and there will be no income tax on this income for him.

    Kindly advice or is there any other option for me to get tax benefits.

    Many Thanks in advance.

    • Tax Dost says:

      You will not be abel to take any benefit for tution paid for your brother. Also their is no tax benefit for gift made to your brother.

  63. I want help my son who is not employed and has no earning. I wish to have him a PPF account so that he will have some corpus money for his expenditure later in his life. I have two options:1. I pay regularly to his PPF ac. or 2.I will give him a gift of 10 lakhs so that he can keep ti in FD and use the interest earned for the purpose of PPF.Please clarify the tax implication to me or him in either case.

  64. malar kannan says:

    Hi Team
    My annual income is 150000.
    My mother transfered 140000 to my account to take dd on my behalf.
    Will the amount be taxable for me.

  65. Farhan Aijaz says:

    my father gift flat to my sister. is it taxable?

  66. Maddy says:

    Helo Dost,

    My Granpa received a property as gift (long back… almost 60 years back). Which he sold off this year and planned to use that money (close to 60 Lacs) for construction of a house. Wanted to know..
    1. Does that amount attracts Tax?
    2. Amount is in savings account, does it need to be moved to Capital Gains Account?

  67. Deepak Gupta says:

    Nri A gives 1cr to his father in law. Receiver buys a flat for that amount which is sold for 1.5 cr after which father in law returns 1cr to person A.

    1) is it legal?
    2) will NRI have any tax liability?
    3) will income clubbing apply?

  68. Vikas says:

    I forgot one 4lakh gift entry which is given by my aunty.
    That money I invest in my new home purchase.
    Assessment of that year of my return is done.
    What to do now ?

  69. yashi yadav says:

    My father is gifting me a car worth Rs. – 10,00,000…is it taxeable ?

  70. Teja says:

    I’ve got a query. One of my friends, who lives in US, lost his wallet. So i helped him out in booking him a hostel over there and gave him some amount and all that amounted to 83,000 INR. Now he’s going to transfer me an amount of 1,50,000 INR through paypal. Will the tax be deducted and then be credited to my SBI account? or I have to pay the tax when I file ITR? So what will this come under?
    And one more, if we take an amount as loan from any source, should that be shown as as income from other sources and will that be taxable? How to file that in ITR

  71. Micky Shah says:

    Dear Sir,
    your articles are really good and knowledgeable :

    I have question Gift tax :

    ” In my case : My Flat (in mumbai ) , there are 3 Co-owners ( my Mother-deceased recently – having 50% share , Myself -25% share , My Brother-25% ).

    Now as per the Flat Nomination done , My mother (deceased) have nominated only me (100% of her share) , now If my brother wants to gift me his (25% of his entire share to me ) ,then my 2 Q’s :

    1: what would be Income Tax applicable to myself (Mr. Micky-gift recipient – donee)

    2: will my brother(Donor) attract any tax ?

    3: Do i have to prepare any gift Deed to do this ?

    4 :Do i have to pay Stamp duty , registration as well ?

    Await your kind detailed reply on this point.

    Micky.

  72. chidanand patil says:

    I wants to gift immovable property to other than relatives what is the tax to be filled by me or him/her. pl note that I m giving the property free of cost.

  73. chidanand patil says:

    I wants to gift immovable property ( 1 BHK Flat ) to other than relative. I wants to know about the IT effects for both of us.

  74. vipin chandel says:

    I wanted to gift Rs45000 to my mother as gift so this is not taxable to her but is there any exemption for me also in tax filing or not

  75. Aditya says:

    My brother have fund in his HUF a/c can he give me that amount as a gift to me

  76. Aditya says:

    A HUF account holder can give gift to another HUF holder and it is tax free or not

  77. NALIN MOHAN says:

    I am making a Fixed deposit of Rs 7,00,000/-( Rs seven lakhs) for one year on my sons name who is a minor as on date. My son will be a major (above 18 yrs) at the time of maturity of the FD. You are requested to clarify if the interest earned from the FD is taxable or not? If yes then in whose IT returns it is supposed to be declared.

  78. Sri says:

    I appreciate your efforts replying for above questions, and it was very helpful.
    my Qn: If my uncle(my father’s cousin in U.S ) gives a cheque in my name of 1 lakh or more for my wedding ( cheque date is 8 months prior to wedding), do i have to pay tax frm my side?

    If i donot use that money for wedding and put it in a fixed deposit, do i need to pay tax?

    Do i need to signa a gift deed?
    Pls advice

  79. .I want to gift rs 10 lakh to my daughter(who is a student and above 20 years of age) through cheque from my post taxable income. As per my knowledge regarding gift tax this amount is free both for the donor and for the donee(i.e father and daughter).plzz clarify?
    2. If so how many times a father/mother can give gift to his /her daughter/son in 1 financial year? and limit of the amount ?
    3. If my daughter deposit the above said 10 lakh rupees in her saving bank account and again go for fixed deposit of rs five lakh.The interest generated say about 50,000/year. the bank will deduct TDS on this amount .how this can be saved because my daughter has no other income?
    4.remaining five lakh rs she opens a PPF account in her name and deposit 1lakh/annum . all the above is justified in the eye of law or not?

  80. MD ZAFAR KHAN says:

    My father aged 75 plus was running a Small proprietorship business from his rented shop for he past 60 years ,He is still filing Income Tax Return -NIL even for his closed business . He has no other source of Income.

    Out of the shop total space of 400 sq feet he allowed his son appx 200 sq feet for doing his own business since the son is un employed and has no other source of Income. Now the son is giving his father RS:-10,000 per month from his earning of appx 20,000/= per month.

    Please suggest in what head this payment of RS:-10,000/= be shown by the father in his file and by his son in his I.TAX file.Is it necessary to file return by a 75 yr old person.

    • Tax Dost says:

      10000 *12 can be sowed as your father income , since this income is below taxable limit, no income tax is payable. and his son can claim relief for rent paid from his business income

  81. dear sir, i have a few more queries as under plz reply
    1. How many times a father /mother can give gift through cheque
    to his/her son /daughter in their lifetime or in one financial year?
    2. Is there any top limit on this gifted amount , if so plz clarify?
    with thanks and regards..!!

  82. Nalin B Oza says:

    Sister has given Gift 2/3 Share of House of Co Op Soc. 1/3 to
    Sister and 1/3 to Minor Brother. Date of Gift agreement is 24th Feb 2010. Is any one has to Pay Gift Tax ?

  83. KUBER SINGH says:

    Dear Sir,
    Our company give me awards as Shining star OF Rs.5000/- my question is can add my salary income & that is taxable or not
    regards

  84. Nalin B Oza says:

    Awaiting replies

  85. Dev says:

    sir,
    i have gifted my father rs 3,00,000/- and how he has to show in his itr filing.

  86. R.J.Baskar says:

    When a father dies and relatives gift jewels as per the customs prevailing in his caste, can the son claim exemption for the jewellery received as “gift received in contemplation of death”

  87. Raj Shri says:

    My mother sold her property and now she is giving me a gift cheque of rs eight lakhs (account payee cheque) for my higher studies. Please confirm if it will be consider as taxable?
    Thanks

    • Tax Dost says:

      Your mother only need to pay tax on capital gain of property. On gift of 8 lakhs, there is no tax either in her hands or in your hand.

  88. Dear sir,
    please reply my following queries
    1.How many times parents can give cash gift through cheque to their son/daughter in one financial year?
    2. Is there any top limit of this gift amount to a close relative under rules i.e son/daughter/brother/sister etc?

  89. Teju Dige says:

    I receive Rs.1,50,000 from my Dad every year for my Birthday. I m a housewife,so i don’t have any other income. I usually do a fixed deposit of 1,50,000 every year. So here who will have to pay the tax?
    I have heard something about form 15 or 16 something. Should i fill it?
    Being a housewife n an income of around Rs.50,000 per yearfrom those deposits,is it necessary for me to pay tax return??

  90. jai says:

    sir
    My father written a WILL and after his death the bank saving deposits are divided between three children equally.Approx 15 lakh has been received in the name of son,d’in law,grand sons totally.Whether it is taxable.If it is not taxable ,what is the limit for non taxable WILL settlements? I am going to buy a flat using this amount and other my savings.Please guide.

  91. Victor says:

    I had gifted 2lac to my father in law which he had put in FD. will the interest earned clubbed with my income or my father in law income.

  92. Santanu says:

    My dad wants to gift me Rs 20 lakh for buying a flat at mumbai.
    This will be transfered to my saving a/c.
    I m 31 yrs old and file my return every year.
    Pls tell me whether i need to pay tax and declare the same while filing return.
    What sort of document proof do i need to have, if I.Tax does a scrutiny regarding the money.

    • Tax Dost says:

      No Tax is required to pay on gift receieved from your parents. Bank copies is sufficient to substiante transfer of amount

  93. Anup Barik says:

    I am salaried person. I want to gift my parents. Can I get tax exempted from my income for that amount?

    • Tax Dost says:

      You will not get any exemption on making any gift to your parents. However your parents will not have to pay any tax on gifts received by them.

  94. HARI SHANKAR SHARMA says:

    Can I Made Gift To My Son Or Daughter Cash, Land, Building , Jewelry Etc

  95. hari shankar sharma says:

    Can a karta or member of huf made gift to his HUF

  96. Dinesh says:

    if i open an FD for 50000 in june and for some reasons have to break it in aug will get a rebate ?

  97. Rishi Rawal says:

    I want to gift my mother Rs. 10,000,00 which is currently lying with me as an FD.
    My mother is a house wife and does not have any other source of income.
    I want my mother to have an FD of this amount on her name so that she can have a regular source of income.
    I can understand from your article that this amount will be tax exempt for her. My queries are-

    1) As the interest income from FD will be around 80-90K (below income tax slab) per year for her, does she require to file IT return for this (she never file return before)
    2) Can there be a possibility of any sort of enquiry for the source of this big amount of 10 Lac which can cause any kind of trouble to her. (Say I transfer this amount to her account Via Check of Internet Bank Transfer)

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