Jan 19 2009

Income Tax Exemption and Rules on Gifts as Income of Source

Posted by krishnas in Income Tax
259 Comment

Income Tax Exemption on Gifts

Introduction

In this blog I will be writing about the Income Tax rules related to the Gifts received by a person. There is many rules on receiving the Gifts based on the gifts nature and from whom the person has received the gift. The Income Tax Act 1961 has made change to the rules in 1st April 2006. We will look into the recent rules in this blog.

Gifts received From Relatives

As per the Income tax act, the Gifts received from any of your relatives are fully exempt from tax. Whether you are received the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts. Here the “relatives” term defines by the Income Tax act as follows :

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 individual
Any lineal ascendant or descendant of the spouse of the individual,Spouse of the person referred to in clauses (ii) to (vi).

For example if you are receiving gift of Rs.100000 from your uncle ( your mother’s brother), it is fully exempt from the Tax. Whenever you get the gifts please apply the relations in the above list to ascertain whether you are liable to pay any tax for the received gift.

Gifts received From Non-Relatives

Here non-relatives means anyone who doesn’t come under the above mentioned relation for you. In this case you are tax exempt up to maximum of Rs.50000 for a financial year. If you receive the gift worth more than Rs.50000, you are liable to pay the tax what ever you received excess of the limit. This rule applies when the gift is a sum of money, whether in cash, by way of cheque or a bank draft. If any other kinds of gifts are fully exempt from the tax.

For example you are receiving a gift of Company Shares from one of your team mate in your company. It is not coming under the tax liability. But, when you are receiving a gift of Rs.100000 (cheque) for the best performing in your company (not a bonus), Rs.50000 is liable to pay tax.

Marriage Gifts

One very happy feature of the provision of taxation of gifts is that any gift received from any person on the occasion of the marriage of the gift’s recipient would not be liable to income tax. There is no monetary limit attached to this exemption.

Special Tax Exempt gifts

The following list of gifts are fully exempted from Tax whether the it is received as Cash, or any other form of the material doesn’t affect the exemption.

Gift received under a Will or by way of inheritance
Gift in contemplation of death of the donor;Gift from any local authority
Gift from any fund or foundation or university or other educational institution or hospital or any trust or any institution referred to in Section 10(23C)
Gift from any trust or institution, which is registered as a public charitable trust or institution under Section 12AA

I hope this blog provides you enough information how to calculate the tax for your gifts. So, when ever you are receviving the gifts, please be careful if you are liable to pay the tax. Thanks for reading this post!!!

if you have any doubts, please post in the comments area so that I can answers all the questions.

TAGS: gift tax, gift tax in india, gift to spouse, gifts, Income Tax, section 80g, tax excemption, tax exemption in gifts, tax rules, tax savings

259 Comments on this post

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April 17th, 2010 at 6:17 am

MANOJ KR JAIN said:

Sir
, FOR THE F.YEAR 2007-2008(A.YEAR 2008-2009) ,THE FOLLOEINGS ARE EXEMPT FROM GIFT TAX OR NOT:::

1) IF AN INDIVIDUAL RECEIVED GIFT OF RS 200000 FROM SPOUSE
FATHER OR MOTHER

2) IF AN INDIVIDAL RECEIVED GIFT OF RS 100000 FROM MARRIED SISTER.

3) IF KARTA OF HUF PAID A GIFT OF RS 100000 TO HIS WIFE.

4) GIFT RECEIVED FROM FRIEND OF RS 100000.

March 12th, 2009 at 11:03 pm
krishnas said:

@MANOJ,
Gift received from friend is exempt up to Rs.50000 per year. Please note that if the gift is in the form of money,or DD. Otherwise it is fully exempt from the tax.

March 12th, 2009 at 11:15 pm
Manmohan said:

If I gift a house to my wife, what would be tax implication for me for the income from that house?
Manmohan

March 14th, 2009 at 5:01 am
krishnas said:

@Manmohan,

Even if you gift the house to your wife, what ever income coming from that house will be considered as your income. You are liable to pay the tax for the income.

Also when you are giving the gift, you are not going to get any tax benefit on it.

March 14th, 2009 at 6:09 am
Kishore Jethanandani said:

I have given Rs. 25,000/- to my sister as gift. I want to know whether this is exempted in income tax or not..

April 9th, 2009 at 12:33 am
krishnas said:

HI Kishore,

No…Your sister can show that as gift and exempt from the income tax. For your case you cannot show as the tax deduction. If you are receiving any gift from the relatives of blood relation, you can claim the tax exemption for the gift income. Who ever is giving gift is assumed that they already paid tax for that amount.

I hope this clears your doubt. If you have any clarification please reply to this comment.

Thanks,
Krishna

April 9th, 2009 at 12:40 am
Kishore Jethanandani said:

my sis has write a gift deed on 10 Rs. stamp paper and she has written that for love and affection of sister i gave her a gift of Rs. 25,000/- I want to know whether I can show this gift deed for exemption in income tax….

April 9th, 2009 at 12:49 am
Kishore Jethanandani said:

thank you very much for your comments. i will keep all these things in my mind

April 9th, 2009 at 12:53 am
krishnas said:

@Kisore,

That will not help you in reducing the income tax anyway. Happy to help you.

Thanks,
Krishna

April 9th, 2009 at 1:11 am
kapil said:

Dear Sir,

I received gift of Rs. 1,00,000 in form of cheque from my married sister. Is this liable for TAX.???

Plz reply,
Thanks and regards,
Kapil

April 23rd, 2009 at 1:44 am
krishnas said:

HI Kapil,

As the article explains, any gift received from the blood relations are tax exempt. In your case the amount Rs.100000 is fully exempt from the tax. Note that you should submit the gift deed with stamp paper because IT people need proof for the gift. I hope you have that.

Thanks,
Krishna

April 23rd, 2009 at 4:10 am
HARISH KUMAR SINGH said:

i can know gift deed required against huf gift reciept in cheque of rs.50000/-

May 29th, 2009 at 12:47 am
T.S. said:

I have received Rs. 1 Lac form My mother’s sister husband, this is tax free or taxabale, pl. advice.

Thanks & regards

T.S.

June 9th, 2009 at 8:48 pm
T.S. said:

I have receievd s. 1 Lac from my Mother’s sister husband, this is tax free or taxable.

Thanks & regards

T.S.

June 9th, 2009 at 8:51 pm
krishnas said:

HI T.S.,

The amount is taxable.

Thanks,
Krishna

June 10th, 2009 at 8:47 am
Abha said:

sir,
I am house wife. I have earned Rs 40000/- from share market for 2008-09. & have recieved a gift of Rs160000/- from husband. Rs10000/ as interest on bank FD. what would be my tax liability?

July 2nd, 2009 at 6:11 am
krishnas said:

HI Abha,

If you are receiving gift from husband then need not pay the tax. Your total income is Rs.50000 (40000+10000). you are not liable to pay any tax for this income. If it crosses Rs.180000, you will be paying the tax.

For the gift purpose, if it is cash, then it should have the proper document as proof.

Hope this clears your doubts. If you have doubts please reply to this comment.

Thanks,
Krishna

July 2nd, 2009 at 6:34 am
Santhakumar said:

Dear Sir,

I am working in central govt under the project. my monthly salary is 30000 consolidated. This is tax free or taxable.

Thank you

July 2nd, 2009 at 10:22 am
Santhakumar said:

Dear Sir,

I am receiving salary from January 20009. Am i eligible for this assessment(2009-2010).

Thank you,

July 2nd, 2009 at 10:26 am
krishnas said:

HI Santhakumar,

Since you are receiving from the Jan 2009, only three months applicable to the financial year 2008-2009. Your earnings are not taxable because it is below the tax slab of Rs.150000 for men. If it crosses that limit then only you will have to pay the tax. Here my question is if your company deducted TDS(Tax Deduction at Source) then you have to file the Income Tax Returns by obtaining the Form 16 from your company. I hope this clears your doubts. If you have any doubts related to filing the Tax Return, please reply to this comment.

Suggested Reading:
Tax Planning for 2009
How to file Tax Returns?

Thank you,
Krishna

July 2nd, 2009 at 6:28 pm
Navin Arora said:

Whether married female can gift a piece of land worth Rs 1100000. to her Mausi son(Mothers Sister son). Does it attract any tax in the hand of donor or recipient for the FY 2009-2010. Does it will come in the ambit of brother relation in gift tax act.

July 10th, 2009 at 8:17 am
KN Khandelwal said:

Dear Sir,

I would like to know if I can gift more than Rs. 200000 to my married daughter in a financial year. Will she have to pay tax on it. Am I required to make a mention of it in my tax return?

July 16th, 2009 at 9:07 am
krishnas said:

HI Navin,

If you gift your mother’s sister’s son, then it is coming under non-relative as per Income Tax law. So, the receiver will have to pay the tax. But, prior to 2009 budget, any gift received other than cash will be fully exempt from the tax. But, there is a change in budget 2009, even if person receives a gift other than cash like land,jewelery,etc. will be exempt only up to the maximum of Rs.50000. Remaining will be taxed. In the case of land, taxable income will be added based on the govt. value of the given land.

I hope this clears your doubts.

Thanks,
Krishna

July 16th, 2009 at 6:27 pm
krishnas said:

Hi KN,

Thank you for asking the question.

You can gift any amount to your daughter whether she is married or not. She will be fully exempt from the tax. But, make the gift deed so that if any legal issue you can show to the income tax officer. Gift will not be deducted from your income. So, it is not required to mention in the IT return unless you are running a company.

Thanks,
Krishna

July 16th, 2009 at 6:32 pm
Abhishek said:

Hi Krishna,

First of all I felt very impressive that you are answering regularly every one very nicely. Thanks from all of us for this help.

I have following queries for the gift received at my marriage.

1) How much max amount I can show as a marriage gift?
2) Do I need to mention this amount in tax returns?
3) Is any other legal document is required for this?
4) Let me know if any thing else I have to take care in this regard.

Best wishes,
Abhishek

July 16th, 2009 at 11:19 pm
krishnas said:

HI Abhishek,

Thank you for compliments and reading my articles. Let me answer your questions.

1)There is no limit attached to this exemption. Also there is no date specified in this regard. Better to have gift received in the same date as marriage date.

2)You need not mention anything related to Gifts received and Gifts given in the IT return. But, if you are doing it in the huge amount better to create the Gift deed to avoid any litigation in future.

3)Yes..you have to create Gift deed with stamp paper.Normally it is not done for small gifts. Some times you are giving gift of more valuable things can be created documents.

4)The above said points are enough to keep you safe. If you have any clarifications in the future always post it in this site. I will answer your questions.

Rules related to gift has changed many times. Because people trying to misuse the flexibility in this case.

Hope this clears your doubts.

Thanks,
Krishna

July 17th, 2009 at 1:29 am
praveen said:

Dear Mr.Krishna,

It was informative going through your site. I have few queries:-
1. Is there any upper limit for receiving gifts in cheque from mother’s capital (tax paid income) and if the amount is taxable?
2. Is there any relation between the amount of gift and the value of stamp paper for the Gift deed?
3. Is notarising the Gift deed mandatory?
4. Are there any other Govt. formalities that need to be complied?

Looking forward to your earliest & thanking in advance.

Best regards
Praveen

July 23rd, 2009 at 10:58 pm
krishnas said:

HI Praveen,

1) There is no limit. If you are receiving the gift from mother. it is totally exempt from the tax.

2)In Karnataka there is negligible fixed stamp duty and registration fee and in some states reduced rates have been prescribed. Wherever rates are there these are ad-valorem (=according to value), value being the guidance value notified for property as per the decision of the State government. Details are available in the booklets sold at bookstalls near the sub-registrar’s office or in law book stores of the place. Details can be ascertained from the staff of the sub-registrar’s office, providing the details of property.

Better consult with your local office.

3)I don’t think so. I am not very much sure on this.

4)No.

Thanks,
Krishna

July 24th, 2009 at 4:45 am
Gordhan Anand said:

Dear Mr. Krishana

Gift received from father amounting to Rs 75000/- during Fy 2008-09, my queries are :-

1. Whether gift needed to be reflected in ITR 2 by receipient as exempted income.

2. Gift received through cheques – whethre gift deed needed,if yes on plain paper or stamp paper
3 If on stamp pater – on what value , whether date of purchase of stamp paper should be prior to transacitons or any current date
Rgds
G.Anand

July 29th, 2009 at 6:44 pm
krishnas said:

HI Gordhan,

No. You are not required to mention that in the ITR forms. If you are preparing the gift deed, please make sure that it is the same date of transaction or 1 or 2 days different. The value of the stamp paper is depend on the state government policy.

Thanks,
Krishna

July 29th, 2009 at 9:55 pm
Sanjay Mandal said:

Dear Sir,

Greeting of the day!!!!!!!

Sir I am working with ABN AMRO Bank. In our bank one insurance contest was launched for the period April to June 09. This contest said that if one does 6 lakhs and above of wapi he will be awarded 1625 future dollars( One dollars = Rs 10) and this could be redeemed at future dates. Now redemation date arrived and they have deducted 33% saying that this would be deducted as TDS. However we are taking this in the form of Sodexo Gift vouchers. As per my knowledge any gift received from non relatives is exempt from tax upto Rs 50000/-. kindly advise whether it taxable or exempt.

August 9th, 2009 at 1:47 am
Rahul said:

Dear Sir,

My wife wants to gift Rs 2 lacs to her Mother.

1. Can this be Done by Cheque ?
2. Will it be a good idea to make a gift deed on 10 Rs Stamp Paper of the same date the cheques is written.
3. Will her Mother need to show this in ITR ?

Thanks & Regards

August 16th, 2009 at 6:22 am
Sherwin John said:

Dear Krishna,

I am an NRI working in Dubai. My wife is an unemployed housewife staying in India.

As the interest rate for NRE Fixed Deposits is very low, I give a cheque of 2 lakhs from my NRE Account every year to my wife who invests this money in domestic Fixed Deposits under her name.

Please advise if there is anything inappropriate in the above. Also, as the total interest she is earning annually from the above fixed deposits is only around Rs. 1,62,000 which is below the income tax exemption limit of Rs. 1,90,000 for women, can she file a 15G form to avoid TDS ? (she has no other source of income in India)

Thank you,

Sherwin John

August 16th, 2009 at 7:25 am
krishnas said:

Hello Rahul,

1. Yes..you can give the gift by cheque.

2. Read this link to get some idea on the stamp duty:http://timesofindia.indiatimes.com/Bangalore/Gift-deed-to-include-parents-now/articleshow/4577137.cms

3. No..She need not show it in the ITR.

Thanks,
Krishna

August 16th, 2009 at 8:26 am
krishnas said:

Hello Sherwin John,

There is nothing wrong in giving the gift to your wife. And also she can submit the Form 15G to avoid the TDS from fixed deposit.

Thanks,
Krishna

August 16th, 2009 at 8:32 am
CHANDRAKANT said:

Respected Sir,

Our client is doctor as profession and running a eye hospital. Our client create seperate firm as A HUF and gift accepted from the father upto Rs.10.00 lacs in various cheques only. please guide me tax free benefit and drafting deed. Please re[ply at earliest.

Awaiting for your reply.

Thankiny you,
Best regards,

August 30th, 2009 at 8:59 pm
Pratik Doshi said:

Hello Sir,

I am a NRI working in Dubai. I stay along with my wife who also is working here and her status is also NRI. Now she wants to gift Rs. 100,000 to her brother in India who is going to start his income tax file with it?

Can she gift this NRI tax exempt income earned here in Dubai to her brother without her brother paying any tax on it?

Also, will the stamp paper gift deed be enough even though it is a gift from NRI sister to resident brother?

Please reply ASAP.

Regards,
Pratik

September 13th, 2009 at 5:49 am
Pratik Doshi said:

Also..can the gift be in cash?

September 13th, 2009 at 5:51 am
krishnas said:

Hello Pratik,

According to the Income Tax Act, all Income earned out of India by NRI’s is exempt from tax. Hence, any remittance to India out of this income will not attract any tax. This means that if you send money to your own account in India, whether NRE, NRO or any other account, there will not be any tax on the transaction. You are free to utilise the amount in India in whatever way you want. Of course, the Indian income accruing on this amount when invested in India will attract taxes.

The second course could be to send the money as gift to a Resident relative.

As per the Gift Tax Act, following categories of Gifts made by the NRI’s are exempt from taxes:

Gift of foreign currency by an NRI to a resident relative, of convertible foreign exchange, remitted from abroad.
Gift by an NRI out of the balance in his Non-resident (External) Account.
Gift of a foreign exchange asset by an NRI to a relative.

Thanks,
Krishna

September 13th, 2009 at 6:11 am
Pratik Doshi said:

Dear Mr. Krishna,

First of all thank you very much for detailed and quick response.

I would like some clarification.

Wehn you say “Gift of foreign currency by NRI to a resident relative, of convertible foreign exchange, remitted from abroad”, does that mean I will have to do TT of the same. Can I gift him cash wehn i come to India for visit or that would have tax implications?

Also, will the stamp paper gift deed be enough even though it is a gift from NRI sister to resident brother?

Regards,
Pratik

September 14th, 2009 at 10:21 pm
krishnas said:

Hello Pratik,

Thank you for the comments. The money earned from outside India will not attract any tax in India. You can give that money to any person. But, the income from such money will be taxable.

Yes..the gift deed is enough.

Thanks,
Krishna

September 15th, 2009 at 7:18 pm
Jathin Das said:

Thank sir u have done a really wonderful job
But i have the doubts in the gifts received from any charitable trust or other NGOs is tax exemtable
Please help me out

September 16th, 2009 at 1:26 am
krishnas said:

If you are donating any gift to charity then you can show that for the tax exemption purposes.

Thanks,
Krishna

September 16th, 2009 at 1:46 am
Jathin Das said:

Hi Krishna

sorry to interrupt but i know that there are tax exemptions for the doantions to NGOs, but i read in this article about receiveing the gifts from other charitable institutions are not taxable.. Can u explain please?

September 16th, 2009 at 1:58 am
Deshraj Singh said:

What will be the Tax implication of Gift received from relative NRI?

October 1st, 2009 at 12:13 am
krishnas said:

Hello Deshraj,

There won’t be any tax if you receive any gift or money from the NRI relative or friends.

Thanks,
Krishna

October 1st, 2009 at 4:45 am
RV said:

Sir,
Thank you for your detailed responses which are very helpful and I am sure you will help me as I am in real need for the same.
I am a NRI(so no tax implications for me) but I sent some large amount to my girlfriend(unmarried) for her medical treatment. I wanted to check is it necessary for her to show this in her tax return right now?
Will it create any issue if we dont? I wish there are not any.

Also later, if we get married can we show these as gift between spoue even if they happened in past when we were not married since its the same man and woman?

I would be really greatful if you can share your expertise to help me out.

Thanks

October 2nd, 2009 at 8:35 am
krishnas said:

Hello RV,

It is not necessary for your girl friend to show in the tax returns. There is no tax for NRI payment to India. If you gift before the marriage , then it will not be considered as the gift to spouse. You should be married at the time of sending the gift money.

Note that if there is income from the gift, that will be clubbed to your income and will be taxed in India.

Thanks,
Krishna

October 2nd, 2009 at 11:07 pm
RANJAN BAJPAI said:

If i gift say Rs. 200000 to my mother through cheque:

1)will it attract any gift tax in my hands or at the end of my mothers hand?

2)Since the amount is given thru cheque, is gift deed required?

3 Will, income made by my mother on the gifted amount (say thru bank FD interest) attract any tax liability on my hands?

October 10th, 2009 at 4:31 am
Dhaval said:

I am a NRI. Whatever money i earned outside india is taxfree. i want to know there is any tax to be applicable on this nri money which i deposit from exchange to my wife account in india. Also i want to know who will have to pay tax from the income generated from this deposited money. Also i want to know this deposited money is my wife’s property or my property. Also i knew that this tax is to be paid by me as this is my source of income. But i have to pay for first stage income. second stage income tax from this money to be paid by my wife. Please clear me about these issue
Thanks
Dhaval

October 10th, 2009 at 4:32 am
dhaval said:

i want to know whether gift given to my wife from outside india will be taxable to wife or mine. Also i want to know whether only first stage incometax to be paid by me & second stage will be paid individually by my wife. please clear me about these issues. I am a nri & my wife has ordinary india account & she is staying in india. for your information.
Thanks
Dhaval shah

October 10th, 2009 at 4:35 am
krishnas said:

Hello Ranjan,

1. There is no tax attached to the gift. If you are presenting the gift, you must have paid the tax already for that amount.

2. Yes. Gift deed is necessary.

3. Surely. any income from the gift is your. You have to pay the tax for it.

Thanks,
Krishna

October 10th, 2009 at 5:03 am
krishnas said:

Hello Dhaval,

The money which you sent to your wife is tax free. Need not pay any tax for that. But, the income from that money is taxable on your hand. Any gift or money sent from NRI is not taxable in India.

The first stage of tax will be paid by you. Second stage will be by your wife.

Thanks,
Krishna

October 10th, 2009 at 9:32 am
dhaval said:

I am an NRI. Please let me know whatever money amount transferred to my father’s saving account in india from exchange(outside india) is taxfree i.e. neither me nor my father will have to pay any tax on this money. Also let me know is this money called gift to my father or not. If it is gift than anybody has to pay any type of tax. Also let me know after transfering this money to my father, who will have to pay tax on the income generated from this money.
Please clear me all these issues.
Thanks
dhaval

October 10th, 2009 at 10:24 pm
dhaval said:

I am an NRI. Please let me know whatever money amount transferred to my father’s saving account in india from exchange(outside india) is taxfree or not & it is called a gift or any declaration required to call it as a gift. If it is gift than anybody has to pay any type of tax. Also let me know after transfering this money to my father, who will have to pay tax on the income generated from this money.
Please clear me all these issues.
Thanks
dhaval

October 10th, 2009 at 10:27 pm
dhaval said:

Is there any type of tax for money transferred to wife’s ordinary indian account from exchange(outside india) by her nri husband. who will be liable for paying tax from income generated from this amount.Is this amount is called a gift or it should be declared & if it is a gift then any tax to be paid when sending money to wife.

October 10th, 2009 at 10:39 pm
krishnas said:

Hello Dhaval,

1. If you are transferring any money as NRI to your father, neither you or your father need not pay the tax. Since you are sending it as the gift, please create the gift deed to avoid any future litigation. If there is any income from that gift, you have to pay the tax in India.

2. For your second question also the same answer. It is your father or wife, rule is the same.

Thanks,
Krishna

October 10th, 2009 at 10:53 pm
dhaval said:

Please let me know whatever amout(cheque/cash) given to my wife by my mother is liable of ay tax(i.e. incometax / gifttax). If it is given as a gift whether gifttax to be paid by my wife or not. Also after transfering this money ,who will have to pay incometax from income generated by this money.
Thanks
Dhaval shah

October 10th, 2009 at 11:03 pm
dhaval said:

Let me know , For giving gifts to relatives,how I can create the gift deed to avoid any future litigation. I send gift(money) from abroad by exchanges & I have receipt of money transferred to indian accounts. This receipts are enough or not to prove the money sent to relatives as a gifttax for any reference for incometax oficer in future. Or any official stamppaper document or other documents required.
Thanks
Dhaval shah

October 10th, 2009 at 11:21 pm
dhaval said:

Let me know whether income generated from gifts given to wife is only tax liable to her husband or income generated from all gifts given to different relatives(as per gifttax laws) to be tax liable for donor only. For example, if I give gifts to my Father/mother/sister/wife. Now I know there is no anytype of tax to be paid by anybody. But income to be generated from these gifts from all relatives will be taxed to me only or individual will have to pay their own tax. Please clear me.
Thanks
Dhaval

October 11th, 2009 at 1:01 am
krishnas said:

Hello Dhaval,

Let me clear one thing. There is nothing called gift tax. When you are gifting money to another person, it is assumed that you have already paid tax for the money which you used to acquire the gift. Also the receiver need not pay any tax. The problem arises only when the receivers doing anything with that money and is there any income from that money. That income belongs to the person who presented the gift. Hope it clears your doubts.

When you are doing it from the abroad, the receipt is enough. In India it is good to create any gift deed. Keep all the receipts of your transactions.

Thanks,
Krishna

October 11th, 2009 at 1:04 am
Senthil said:

Sir,

If I gift Rs.10 Lakhs to my wife (with gift deed in place), as per some of your reply’s in this blog, the interest income from such gift need not be considered as part of my taxable income.

But in the article “Clubbing of Income”, it is mentioned that the interest income from such gift also needs to be considered in my income”.

Kindly clarify.

October 11th, 2009 at 2:01 am
dhaval said:

Sir,
Let me know who will pay tax from the income generated from the gift money given to mother/sister. i.e.suppose I gift 5lakh to each then who will pay tax from income generated from this 10lakh.

October 11th, 2009 at 10:07 pm
dhaval said:

sir,
If I give gift to wife’s sister/brother & in turn they will transfer this gift to my wife than income generated from this gift will be tax liable to my wife or her sister/brother or me only.
As I am already in taxable limit so i want some money I transfer to my wife & she has independent income from originally my income so as i mentioned above , by this way can it be done
Please clear me
Thanks
Dhaval

October 12th, 2009 at 10:35 pm
Umesh Kumar said:

I would like to know how & where can we show gift received from relatives/non relatives in the Tax Retrun in form ITR-2.

October 14th, 2009 at 5:40 am
krishnas said:

Hello Umesh Kumar ,

You need not show the gift received in the IT returns.

Thanks,
Krishna

October 14th, 2009 at 8:42 am
dhaval said:

sir,
If I give gift to wife’s sister/brother & in turn they will transfer this gift to my wife than income generated from this gift will be tax liable to my wife or her sister/brother or me only.
As I am already in taxable limit so i want some money I transfer to my wife & she has independent income from originally my income so as i mentioned above , by this way can it be done
Please clear me
Thanks
Dhaval

October 14th, 2009 at 9:43 pm
Senthil said:

Sir,

If I gift Rs.10 Lakhs to my wife (with gift deed in place), as per some of your reply’s in this blog, the interest income from such gift need not be considered as part of my taxable income.

But in the article “Clubbing of Income”, it is mentioned that the interest income from such gift also needs to be considered in my income”.

Kindly clarify.

October 15th, 2009 at 11:33 am
aspi k press said:

Excellent informative articles……………. Congratulations

Kindly let me know if : (a) Cousin (son of father’s brother) and (b) Cousin’s spouse, qualifies as blood relatives and that gifts received from them is tax free.

Regards
Aspi K Press

October 18th, 2009 at 11:52 am
amit saini said:

hi
my father gift to my wife (rs 45000) in financial year 2008-2009. so please help me , this amount we mension in which ITR.
Thanx
Amit

October 19th, 2009 at 1:34 am
aspi said:

Kindly let me know if : (a) Cousin (son of father’s brother) and (b) Cousin’s spouse, (c) Bhabhi (Brother’s wife) qualifies as blood relatives and that gifts received from them is tax free.

Regards
Aspi

October 19th, 2009 at 2:52 am
krishnas said:

Hello Aspi,

As mentioned in the article, following are the blood relatives:

1. Spouse of the individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. Any lineal ascendant or descendant of the spouse of the
7. individual,Spouse of the person referred to in clauses (ii) to (vi).

Thanks,
Krishna

October 19th, 2009 at 4:36 am
krishnas said:

Hello Amit,

Need not show this amount in the ITR.

Thanks,
Krishna

October 19th, 2009 at 4:36 am
Dhiraj said:

I want to open post MIS account of my wife name from my NRI income.I know if I give gift her directly than interest from this investment will be clubbed to my income.Can it be possible that first i give gift to her brother/sister & than they give the same to my wife as a gift.
Then incme from this interest will be her or her brother/sister or still of me

Kindly clarify.
Thanks
dhiraj

October 19th, 2009 at 9:37 pm
S.N.Paul said:

I have retired from service.I want to gift Rupees seven lakhs to my wife by gift deed out of retirement benefits.Whether there will be any tax liability to me for the interest incurred on
this gifted amount?

please clarify.

Regards,
S.N.Paul

October 21st, 2009 at 10:38 am
krishnas said:

Hello Paul,

Yes..you have to pay the tax on gifted amount to your wife.

Thanks,
Krishna

October 21st, 2009 at 7:31 pm
narasimhan said:

if i sell the family property which was given to my father in 1975 and subsequesntly my father built a flat in 1993. now my father is died. we brothers & sisters want to share the amount after selling the property. how the iTax will be applicable ant what % we individual to pay tax.

October 27th, 2009 at 11:50 pm
krishnas said:

Hello Narasimhan,

I would suggest you to consult any local lawer or income tax authoruty for the details. They can give you the better idea.

Thanks,
Krishna

October 28th, 2009 at 12:58 am
Alokita said:

Hello,
I have a house in my name. I want to gift it to my mother.
1) Will it attract any gift tax?
2) Also, I have around 15-16 monthly installments of loan left. So can I transfer the property now and continue to repay the loan, or do I need to transfer it after settling full loan.
Thanks very much for your response in advance.

Regards,
Alokita

October 28th, 2009 at 2:32 am
dhiraj said:

sir,
If I give gift to wife’s sister & in turn she will transfer this gift to my wife than income generated from this gift will be tax liable to my wife or her sister or me only.
As I am already in taxable limit so i want some money I transfer to my wife & she has independent income from originally my income so as i mentioned above , by this way can it be done
Please clear me
Thanks
Dhaval

October 28th, 2009 at 2:47 am
dhaval said:

sir,
If I give gift to wife’s sister & in turn she will transfer this gift to my wife than income generated from this gift will be tax liable to my wife or her sister or me only.
As I am already in taxable limit so i want some money I transfer to my wife & she has independent income from originally my income so as i mentioned above , by this way can it be done
Please clear me
Thanks
Dhaval

October 28th, 2009 at 2:48 am
krishnas said:

Hello Alokita,

1. you can gift your house to your mother, that will not attract any gift tax. But, if the house is given for rent, then rental income is yours.

2. You have to complete the loan and transfer the house. Or the buying person will have to pay the remaining loan. In this case, please consult the banker. They are the right person to take this decision.

Thanks,
Krishna

October 28th, 2009 at 8:14 am
ravi said:

I am salaried employee, i am purchasing car worth 3,00,000 car through car loan ( 85%). If i show this car as gift to my wife, can i claim tax exemption in my IT returns, please clarify

regards
ravi

October 31st, 2009 at 11:30 am
krishnas said:

Hello Ravi,

You cannot claim any tax benefits on providing the gift to some one. Also there is no need to show the gift expenses on the IT returns, since it is not deducted from the taxable income at any way.

Thanks,
Krishna

October 31st, 2009 at 5:23 pm
shweta said:

hello, pls tell me if a person gifts jewellery to his son and then sons gifts it back to his mother who sells the jewellery and invests in fixed deposits of bank what will be the tax consequenses..
thank you
shweta

November 1st, 2009 at 9:09 am
krishnas said:

Hello Shweta,

Thank you for the comments.
The interest income from the fixed deposit will be taxed to the person who gifted the property.

Thanks,
Krishna

November 1st, 2009 at 9:17 am
Dhaval said:

Sir,
I am a NRi.Let me know if I give my nri income as s gift to father/mother than income generated from that will be their or it will be clubbed to me as like the case of spouse or minor child.
Also let me know can it be possible that I give NRi money to my wife not as a gift but like employed amount of her than she will file return of this amount if taxable. Then income generated from this amount will be her independent or still mine
Please clear me this issue.
Thanks
Dhaval

November 1st, 2009 at 10:55 pm
krishnas said:

Hello Dhaval,

If you are gifting to your father or mother that income will be clubbed with your income only.
How are you planning to pay money to wife? Are you running any company? Then if your wife is employee you can gife the money as salary and she can file the IT return.

Thanks,
Krishna

November 2nd, 2009 at 7:53 pm
Ravi.J.R said:

Recently my company allotted 100 shares at par value. The shares were transferred to my DEMAT account about 2 months back. If i sell the shares, will it be eligible for tax. If i sell after one year of allotement what is tax impact

thanks for help

ravi

November 5th, 2009 at 8:34 am
pardeep said:

Sir,

I am doing outsourced work and my all income is coming in banks which amounts to be app. 50 lakh / year. How can i get rid of income tax. My CA said he will put expenses and use any means to reduce tax. But may i know what is best for me to save tax. I have good understanding with clients.

November 6th, 2009 at 12:33 pm
pardeep said:

I am dealing with all international clients and they are sending $20000/ month means 1000000/ month. what is best way to save tax, I can change the point of invoice and client agreed. They are all from US, UK etc. Please help me to plan.

November 6th, 2009 at 12:36 pm
AJAY MITTAL said:

is there any latest changes in gift rules from NRI blood relatives.
If my NRI sister gifts me from her NRI account is there any limit to amount which is tax free or any amount is tax free

November 10th, 2009 at 5:34 am
krishnas said:

Hello Ajay,

There is no tax on the gift.

Thanks,
Krishna

November 10th, 2009 at 10:26 pm
Sahil said:

Dear Krishna,

Thanks to you for all your replies and comments.

Here is my query,

I am an NRI since last 3 years, I have an NRE savings account with a Nationalized bank and at the same time I still hold a savings account in India which I have not been able to convert to NRI account till now.

Last year one of my collegue and freind needed some money (freindly loan) to construct his house, There was some prob due to which I wasn’t able to transfer money from my NRE account to his sisters account, so I transferred it form My NRE account -to – my savings – and then to his sisters saving account in india. The total amount was about 8 lakhs -in 4 transactions of 2lakhs each .

I want to know if there will be any tax implication on this transaction. Should he or his sister return the money through banking channels or should we sign some legal documents for this freindly loan.

Please advice

November 11th, 2009 at 1:29 am
krishnas said:

Hello Sahil,

It is not legal to have the savings account in India when your status is NRI. It is adviced to inform your bank about your NRI status. They will change your account status to Non-Resident (Ordinary) Account(NRO). There won’t be much problem if you transfer to your bank account in India. It is good if you have the record of transaction in the future.

Thanks,
Krishna

November 11th, 2009 at 4:05 am
Sahil said:

Thanks for your reply…. I appreciate it.

Can you please clarify the second part of my question:

“I want to know if there will be any tax implication on this transaction. Should he or his sister return the money through banking channels or should we sign some legal documents for this freindly loan.”

regards,
Sahil

November 11th, 2009 at 5:54 am
krishnas said:

Hello Sahil,

As per the Gift Tax Act, following categories of Gifts made by the NRI’s are exempt from taxes:

1. Gift of foreign currency by an NRI to a resident relative, of convertible foreign exchange, remitted from abroad.
2. Gift by an NRI out of the balance in his Non-resident (External) Account.
3. Gift of a foreign exchange asset by an NRI to a relative.

But, You have transferred from the savings account. That will attract the tax. It is advisable to have some documents explaining that you have given the friendly loan.

Thanks,
Krishna

November 11th, 2009 at 7:55 am
sahil said:

Thanks for your prompt reply Krishna,

This was a verbal and mutual agreement. Can you please advice what kind of document should it be. Since we both are Abroad, will a simple agreement on a normal paper signed by both of us us and one or two witnessess will be ok.

Thanks in advance..

November 11th, 2009 at 10:06 pm
krishnas said:

Hello sahil,

It should be OK. It is better to get the advice from the legal experts.

Thanks,
Krishna

November 11th, 2009 at 10:39 pm
sahil said:

Thanks you for your valuable response. I found this link related to my query, can you please advice if this is authentic information.

November 11th, 2009 at 11:48 pm
sahil said:

Forgot to attach the link: http://www.bankbazaar.com/guide/the-abolishing-of-gift-tax-and-what-happened-next/

November 11th, 2009 at 11:48 pm
krishnas said:

Hello Sahil,

That is valuable resource. The information published in that site will be true because they are popular finance consultants.

Thanks,
Krishna

November 11th, 2009 at 11:54 pm
sushil said:

my younger brother is nri and i want to take gift in my wife name (bahabhi) name . can it be exempt or not

November 12th, 2009 at 2:29 am
krishnas said:

Hello Sushil,

It will be fully exempt from the tax. If it is money gift, please tell him to send it from his NRE account.

Thanks,
Krishna

November 12th, 2009 at 6:21 am
Raj said:

Hello,

I live in Canada. My father’s best friend in India (not directly related, but technically my godfather) wants to gift me money – a rather large amount, is this taxable?

If so, my uncle (father’s brother) is also willing to gift me the same amount.

Under which scenario, if not both, is the gift tax exempt?

Pls advise

November 12th, 2009 at 9:45 pm
krishnas said:

Hello Raj,

In your second case, the gift amount is tax exempt. Since his relation is falling under “Brother or sister of either of the parents of the individual”. In your first case, the money received more than Rs.50000 is taxable on your hand.

If the gift is in the form of non-cash, it is not taxable.

Thanks,
Krishna

November 12th, 2009 at 10:25 pm
Sri said:

My husband has gifted me Rs. 85000 on which he has paid TDS. how can he claim the refund and what r the formalities for making a gift? do we need attach any proof with the return for claiming refund on the gifted amount? Note: i’m a homemaker and don’t have any other income source. please advice.

November 15th, 2009 at 11:21 pm
apparao.svvn said:

Dear Sir,

One of my friends relative living is US wants send USD 100000 as a gift. Is this money taxable under income tax act in the hands of receipient.

Please clarify.

Apparao

November 15th, 2009 at 11:27 pm
krishnas said:

Hello Apparao,

If he send it from his NRE account, it is fully exempt from the tax.

Thanks,
Krishna

November 16th, 2009 at 6:10 am
Dhaval said:

Sir,
I am a NRI. I gave 5lakhs cheque as a gift to my wife normal savings accounts from my NRE account. She invested this amount in small savings as MIS/KVP. I want to know who will be liable to pay the tax from the interest of these savings. My friend told me that if indian income I gift to wife than income generated will be clubbed to donor(me) but if NRI income to be gifted to relative than tax liability will be of donee. Is this true.
Please clear me this issue.
Thanks
Dhaval

November 19th, 2009 at 4:02 am
parag said:

my father in law wants to gift my wife i.e. her daughter 50 lac rupees so is it taxable ?…..

November 24th, 2009 at 7:29 am
krishnas said:

Hello parag,

It is not taxable because the gift comes under the relatives.

Thanks,
Krishna

November 24th, 2009 at 5:39 pm
dhaval said:

Sir,
I am a NRI. I gave 5lakhs cheque as a gift to my wife normal savings accounts from my NRE account. She invested this amount in small savings as MIS/KVP. I want to know who will be liable to pay the tax from the interest of these savings. My friend told me that if indian income I gift to wife than income generated will be clubbed to donor(me) but if NRI income to be gifted to relative than tax liability will be of donee. Is this true.
Please clear me this issue.
Thanks
Dhaval

November 24th, 2009 at 10:04 pm
krishnas said:

Hello Dhaval,

The interest income will be clubbed into your income. Because, you are gifting to your wife. If the interest income is invested, the income come from that will be taxable under your wife name.

Thanks,
Krishna

November 25th, 2009 at 9:18 pm
Dhaval said:

Sir,
Thanks for your answer. But my query is that if I give my NRI income to my wife & investment from this NRI income in India will also be clubbed to my income or not.
Or only investment from gifting of my Indian income will be clubbed to my income.
Please clear me this issue.
Thanks
Dhaval

November 25th, 2009 at 10:57 pm
krishnas said:

Hello Dhaval,

Any income from the NRI investment will be clubbed to your income only. You have to file the IT returns to show your income and pay the tax in India.

Thanks,
Krishna

November 25th, 2009 at 11:38 pm
HITESH said:

DEAR SIR/MAM

WE ARE GOING TO RECEIVE A GIFT OF AN INDUSTRIAL SEAD FROM MY AUNTY DOES IT FREE FROM INCOM TAX & PRORETRY GAIN TAX.

REGARDS
HITESH

December 2nd, 2009 at 12:04 am
krishnas said:

Hello Hitesh,

If your aunty is falling under the blood relation, then it is tax free.

Thanks,
Krishna

December 2nd, 2009 at 7:26 pm
situ said:

My father in law wants to gift his daughter a sum of Rs. 10 lacs. Is a gift deed required?

December 10th, 2009 at 3:07 am
goutam said:

if i have RS.300000 worth of equity share of a company and i want to transfer RS150000 worth of share to my friend as a gift.please tell me ,Can income tax department charge any tax to me or my friend.

December 12th, 2009 at 1:09 am
sandeep said:

my wife is housewife. she saved money around 45000 Rs. from my salary. & she get gift of 5000 Rs. from various relatives. she kept all amount of 50000 Rs. kept in bank as fixed deposit for the year. then whether the interest generated from it , will be considered as income as my income?

or to save tax will i gift to wife?

December 12th, 2009 at 10:45 pm
archana goenka said:

can i give gift to my husband”s BROTHER”S WIFE . IS IT FREE FROM GIFT TAX ?

December 17th, 2009 at 10:36 pm
archana goenka said:

my father is NRI LEAVING IN NEPAL I RECIEVED GIFT OF TWO LAKHS FROM HIM .I HAVE TAKEN A CONFIRMATION LETTER OF GIFT FROM HIM. .IS THIS ENOUGH ?

December 17th, 2009 at 11:09 pm
S C JAIN said:

Sir
If I gift Rs 2,00,000=00 to my wife-I know No tax is to be paid,
some one told me that I must submitt an effidavit along with my Tax Return that I have gifted Rs 2,00,000=00 to my wife during the financial year.
Plese guide me,Thanks,
S C JAIN

December 20th, 2009 at 5:35 am
Srini said:

Gift Tax

December 20th, 2009 at 9:50 pm
kap said:

If my wife, a housewife, receives her share of her deceased father’s property, would it be taxable in her hands. If so what way can she legally avoid / minimize it.

December 23rd, 2009 at 7:44 am
krishnas said:

Hello Kap,

It is not taxable if it is inherited from parents.

Thanks,
Krishna

December 25th, 2009 at 9:08 am
sunil said:

I am having a nre account in a bank in india which i opened in 2005. i used to have a retail shop in africa. business dint do well and i shut the shop in 2009 april since then i am in india doing nothing and eating my savings which were deposited in my nre account from africa. now i want to do some business in india, so i asked for a loan of 50 lakhs from my blood brother which he is ready to give me. he is a nri working in china. i want to ask whehter i will have to pay tax on that 50 lakhs. secondly i have only nre account in india, i do not have any local account. where should i tell my brother to transfer the 50 lakhs.

January 4th, 2010 at 5:07 am
karru sudhakar said:

An person purchased a house in his wife’s name though she has no source of income. The loan for acquiring the property was taken from a bank with the husband being a co-applicant to the loan. Can he claim the tax benefits in respect of the interest payment and principal repayment?

January 5th, 2010 at 4:44 am
Satish said:

Hi,
I want to know if money sent to my dependents(parents or brother or sister) every month is exempted from income tax or not. If these amount is gift or not?

January 5th, 2010 at 6:28 am
Amandeep Singh said:

This is a real helpful post… I must admit there were many aspects mentioned here which I did not know..

January 6th, 2010 at 7:22 am
krishnas said:

Hello Amandeep,

Thank you for the comments.

Thanks,
Krishna

January 6th, 2010 at 10:55 pm
renjith said:

Hello,

I’ve won a contest conducted by tatadocomo and won a phone priced Rs 24,500 from them.

For claiming the prize, they told me to pay a gift tax for Rs 7571.
But when I checked the income tax dept site, its written that there is no need to pay gift tax for items costing less than 25k.

Do i need to pay this tax?

waiting 4 ur reply.
renjith

January 11th, 2010 at 12:56 pm
krishnas said:

Hello renjith,

Yes. you have to pay the tax for the gifts. The rules on gift tax has been updated from Oct 1,2009. You would have read the old one.

Thanks,
Krishna

January 11th, 2010 at 10:47 pm
Hardik said:

If I give 1L cash gift to wife then will 1L non-taxable for me?

January 13th, 2010 at 4:58 am
Hardik said:

Hello,

If I give 1L cash gift to wife then will 1L non-taxable for me?

Thanks and Regards,
Hardik

January 13th, 2010 at 5:00 am
Abhijeet said:

I have given 1 lakh Rs in cash to my Dad as a gift.
will i get a tax benefit for that.
If so under which clause.
Thanks in advance
Regards
Abhijeet

January 15th, 2010 at 12:04 am
krishnas said:

Hello Abhijeet,

There is no tax rebate for giving the gift. Only advantage is, your father won’t get any tax for that amount. He can use it freely.

Thanks,
Krishna

January 15th, 2010 at 4:51 am
krishnas said:

Hello Hardik,

No. It will be taxable.

Thanks,
Krishna

January 15th, 2010 at 5:10 am
Hardik said:

Thank you very much for giving an answer.I have one more query is,i have done following investments to save my tax.

1) 1l under 80C.
2) Medical policy.
3) Medical bills.
4) house rent.
5) conveyance allowances.

after doing all this still my tax is getting deducted,so my questation is now how can i save my tax more?

January 15th, 2010 at 5:19 am
Raj said:

Hi,

I wanted to ask if gift payments from myself (an NRI) to my uncle (mum’s real brother) in India will be exempt from tax at his end?

[I noticed that the Act states that gifts from the brother/sister of either parent of the individual (i.e. FROM an uncle/aunt TO their nephew/niece) are tax exempt, but I wanted to know if this also applies in reverse (i.e. gift payments FROM a nephew TO their uncle/aunt)]

Any help you can provide is most appreciated

Rgds
Raj

January 15th, 2010 at 11:29 pm
krishnas said:

Hello Hardik,

Do you have any other investments?

1. Home Loans
2. Interest on Education Loans

Thanks,
Krishna

January 16th, 2010 at 12:19 am
krishnas said:

Hello Raj,

It will be exempt.

Thanks,
Krishna

January 16th, 2010 at 12:21 am
Hardik said:

Hello Krishnas,

I do not have.

I have one more query is..My wife having ULIP plan and LIC policy on her name and premium is 25k and 6k per year respectively..so can i declare her investment as a spouse under 80C,because she is not going to declare that premium.

I would like to say thank you very much from my bottom of the heart for giving us reply very quickly.

I really appreciate you.

Thanks and Regards,
Hardik Desai.

January 17th, 2010 at 9:40 pm
Raj said:

I am a student I want to add 500000 rs in my bank account. My aunty(mum’s sister) gifted me but I dont have any gift proof. How much I have to pay tax for this and will I get any problem from income tax people? Will I get any problem if I add this money in my hdfc bank account? I m 22 yrs old. Or can I show any gift proof by writting on 20 rs stamp paper with my aunty’s signature? What are the options?
Please reply soon

January 18th, 2010 at 4:00 am
Raj said:

And yeah I forgot to clarify that my aunty stays in abroad. And I need to add that money in my account just for 2 months. What are the options for this problem? Can I do like my any uncle writes on stamp paper that hes gifting me this cash? Will I get any problem if I add this money together in my bank account for two months? Thanks in advance.

January 19th, 2010 at 12:38 am
Chaitu said:

Hi,

My friend an Agriculture wants to gift money to me (an Employee) an amount of 3 lakhs. As an agriculture I hope it is not required to pay tax for him for the money which he is gifting. Do the receiver need to pay any tax for that money.

If the receiver start some business with that money then the income from the gifted money belongs to the person who presented the gift and in this case the donar’s occupation is agriculture, so please let me know whether the donar has to pay tax for the income though his occupation is agriculture or the receiver has to pay the tax.

Thanks,
Chaitu

January 19th, 2010 at 5:52 am
Pranav said:

Hi,

Your suggestion are really helpful to me and it cleared lot of confusion.

i few queries:
1. Can my Dad gift money to me in form of cash (300000).
2. I have bought mutual fund (worth 50K) in my name Can I show these mutual fund for my wife under 80C deduction.

Thanks,
Pranav

January 19th, 2010 at 9:59 pm
Pranav said:

Hi Krishna,

My wife wants to buy a car, in this case can I directly gift her money by giving cheque in the name of car dealer or should I give cheque in her name and in turn she should give her cheque in the name of car dealer.
Note: car will be in the name of my wife.

Thanks,
Pranav

January 19th, 2010 at 10:07 pm
webkarma said:

In case I receive a sum of Rupees 10 lac from my dad, what will be the amount of tax applicable on me ?? pl suggest

January 21st, 2010 at 10:05 pm
Dhaval said:

Hi webkarma,
As gift received from father is under category of free so you do not have to pay any tax. Only thing for this money your father should have legal papers. Also your father has to make legal gift deed so in future you have legal proof for this money.

Thanks
Dhaval

January 21st, 2010 at 11:07 pm
webkarma said:

Thanks dhaval for the information … Lastly could you let me know what will be the correct amount of Stamp Paper required for this gift deed.

January 21st, 2010 at 11:10 pm
Dhaval said:

Hi webkarma,
As per my knowledge 50 or 100Rs stampaper is enough. For further more clarity consult with any Incometax consultant or lawyer.

Thanks
Dhaval

January 22nd, 2010 at 12:41 am
P G Krishnan said:

Hello,

A married daughter residing abroad wants to make a gift of Rs. 20 lakhs to her Father who is a senior citizen and has become disabled after a stroke.

1. Will this be taxable in the hands of the daughter or father?

2. If the father invests this amount if FD, will interest income therefrom be taxable in the hands of father or daughter? If taxable in the hands of daugther, for how long?

3. Can this gift be made from NRE account held in the maiden name of the daughter?

4. If there any other formality to be complied with, other than a gift deed on stamp paper. Can the deed be made on white paper?

5. This gift need not be mantioned in the ITR of either the father or daughter. Kindly confirm my understanding.

Thank you for your valuable time and guidance,

P G Krishnan

January 22nd, 2010 at 2:32 am
krishnas said:

Hello Krishnan,

I am writing the answers in order.

1. There won’t be any tax if the money is transferred from the NRE account.
2. It will be taxed in the hands of daughter. But, income from that income is taxed in the hands of father.
3. Yes. Can be done.
4. It is better to do with stamp paper.
5. There is no need to mention in the ITR.

Thanks,
Krishna

January 22nd, 2010 at 9:07 am
krishnas said:

Hello Dhaval,

Thank you for the answer.

Thanks,
Krishna

January 22nd, 2010 at 9:08 am
Raj said:

Dear krishnas,
I have asked question as well bout how to manage 5 lakh rs in my account for 28 days. Please do reply me because I have to add this money in my account by 1st of january because I need to show it in my account at least for 28 days. Thank you. Looking forward for your suggestion

January 23rd, 2010 at 1:20 am
P G Krishnan said:

Hello,

Many thanks for your prompt response.

Will there be any problem if the payment is made from NRO account instead?

Thank you once again,

P G Krishnan

January 23rd, 2010 at 3:24 am
krishnas said:

Hello Raj,

Your question is not clear. What is the purpose of adding Rs.5 lacs. Are you expecting any return for that money?

Thanks,
Krishna

January 23rd, 2010 at 3:42 am
krishnas said:

Hello P G Krishnan,

Yes. It must be transferred from NRE, that is the proof that the money came from another country.

Thanks,
Krishna

January 23rd, 2010 at 3:47 am
Raj said:

Hello krishnas,
Please check few messages back. I asked question on january 17th at 9.40 pm. I m a student and wanna go abroad so I need to manage this 5 lakh in my account for 28 days. I dont know anything bout tax. Please let me know.

January 23rd, 2010 at 5:29 am
krishnas said:

Hello Raj,

I have answered your question.

Thanks,
Krishna

January 23rd, 2010 at 10:04 am
Raj said:

Hello krishnas,
Oh i m sorry its on january 18 at 4 a.m. Repeating my main question again. I am medical student and want to go abroad for further study. I need to show 5-6 lakh rs in bank account for that. I can show in my dad’s account as well. I have got cash 5 lakh at my house. I really dont know if income tax people will make any problem if i add that 5 lakh in my account. Or its better to add 2 lakh in my dad’s account and 3 in mine? I was in moscow till now so dont know much bout income tax. I need to add this money in my account just for around 2 months or less. After that ill withdraw it as I m gonna go for study. How to manage this?
Thank you.
I read your all answers you are really very very helpful for everyone thats very nice work

January 23rd, 2010 at 12:31 pm
krishnas said:

Hello Raj,

Sorry for the delayed reply.
You need not worry about the income tax for just showing it in your bank account. Also showing 5 lacs is not a problem. If possible try to show it in two different account as you told. I hope this helps you.

If you have any more doubts, please reply me.

Thanks,
Krishna

January 23rd, 2010 at 5:28 pm
Raj said:

Hello krishnas,
you dont need to say sorry at all. Good to hear that I wont get any income tax problem. I am a medical student and havent started job yet so wont they ask me where did I get this much money? They wont make any income tax problem? Because my dad is retired now. Ok thank you very much for help.

January 23rd, 2010 at 10:26 pm
krishnas said:

Hello Raj,

Did your father gave the money? Then you can tell the reason.

Thanks,
Krishna

January 23rd, 2010 at 10:40 pm
Raj said:

No krishna my father didnt give me money. My aunty who live in abroad gave me cash and I dont have proof and shes not in india so..
Thanks.

January 24th, 2010 at 1:08 am
krishnas said:

Hello Raj,

If your aunty give this as the gift, then you need not pay the tax. But, for safety have some proofs.

I don’t think they will ask you for the proof. because, 5 lacs is not a huge amount.

Thanks,
Krishna

January 24th, 2010 at 1:21 am
Raj said:

No krishna, I really dont have any proof unless I do my aunty’s signature on stamp papers because shes not available in india. I have to add this money in my account by 1st of january. Ok then ill add 3 lacs in my account and rest of money in my dad’s account with a hope not to get income tax problem. Let me know if you have an idea bout easy safety way for this.. This is the matter of just 2 months. Thank you very much for yr suggestion.

January 24th, 2010 at 2:06 am
sd said:

One of my friend has gifted shares worth Rs 3 lacs to his wife. The lady is housewife and does not have any income of her own. What will be the tax liabilities if his wife sells these shares and does trading of shares with this money.
How can a housewife generate her own corpus and be a independent income tax assessee?

January 27th, 2010 at 12:14 pm
Monika said:

Hello,

I’ve received $40.000 from my mother as a gift. Every year me and my husband file joint returns. I am stay home mom, my husband is the one who is working. Could you please let me know if we have to pay taxes on this gift? Will this money be considered as a part of our income? And will it affect my husband’s returns?

January 28th, 2010 at 2:54 pm
Dhaval said:

Hello Monika,
If this money received from your mother’s NRE/FCNR account directly then neither of you or your husband is required to pay any type of tax. only official giftdeed is required. If this money is received from your mother’s ordinary account then even it is not required from your side to pay any tax. Only your mother has legal proof of that money i.e. it is assumed that she has already paid tax on this money.Again gift deed is required any case.
Thanks
Dhaval

January 28th, 2010 at 10:25 pm
krishnas said:

Hello Dhaval,

Thank you for the reply.

Thanks,
Krishna

January 29th, 2010 at 2:29 am
Ryan Kiran said:

Hello sir,
I am a disabled (above 80%) person. I got approximate 7-8 Lac Rs. for my medical treatment form my NRI relatives & Non-relatives. the amount they directly transfarred to my bank account from their account. Some this amount utilized for medical treatment. I dont have any gift deed or any proof except my bank account statement.
My questoin is:
1).Is there is any tax applicable for the amount?
2).Can I invest the remaining amount in any FD or Mutual fund?
3).Then who will pay the Tax on the interest of FD or MF?
4).Need to mention in ITR?
5).Enough Bank a/c statement or need any other proof?

Please Reply sir. Thank you in advance.
Ryan Kiran.

January 29th, 2010 at 2:36 am
Chaitu said:

Hi all,

I have posted a query on January 19th, 2010. Could any one please respond to the same.

Thanks,
Chaitu

January 29th, 2010 at 4:55 am
Vikas said:

Dear Sir

I received an amount of 1 crore from my father in law recently. The amount was deposited into a joint account operated by my wife and me. My father in law and wife are both NRI. My wife and I reside in India. Please tell me my tax implications.

January 31st, 2010 at 12:24 am
krishnas said:

Hello Vikas,

The gift is not taxable since you have received from your father-in-law.
Do you have any other doubts?

Thanks,
Krishna

January 31st, 2010 at 12:36 am
krishnas said:

Hello Chaitu,

You said the person who gifted is friend. In that case, you have to pay the tax for the money above Rs.50000.

Thanks,
Krishna

January 31st, 2010 at 1:06 am
Vikas said:

Hello Krishna

Thank you for your quick reply. Please tell me if there is an upper limit to the amount I can receive? What about the interest accrued on this amount? And lastly does the implication change if the amount was deposited into my personal account rather than joint account?

Thanks.

January 31st, 2010 at 9:55 am
Ryan Kiran said:

Hello sir,
I was a regular viewer of your site. Sir, you are answering all the queries with details. I appreciate your good job.

I am a disabled (above 80%) person. I got approximate 7-8 Lac Rs. for my medical treatment form my NRI relatives & Non-relatives. the amount they directly transfarred to my bank account from their account. Some this amount utilized for medical treatment. I dont have any gift deed or any proof except my bank account statement.
My questoin is:
1).Is there is any tax applicable for the amount?
2).Can I invest the remaining amount in any FD or Mutual fund?
3).Then who will pay the Tax on the interest of FD or MF?
4).Need to mention in ITR?
5).Enough Bank a/c statement or need any other proof?

Please Reply sir. Thank you in advance.
Ryan Kiran.

January 31st, 2010 at 9:00 pm
Amandeep Singh said:

Thanks a lot for the info Krishna…

February 1st, 2010 at 5:24 am
Shekhar said:

Hi Krishna!!

all the articals are very informative here and the information is appericiable!!
i have one question for you.

if i paid 3 lkh (in the form of dollars) to my father through bank, can i take exemption under income tax act?
i have transfered this money through bank and transfer to newzealand to my father’s account.

please reply my question.. thank you

February 1st, 2010 at 5:59 am
krishnas said:

Hello Shekhar,

There is no exemption given for the gift.
Thanks,
Krishna

February 1st, 2010 at 6:46 am
krishnas said:

Hello Ryan,

The amount is taxable. If you have received amount from your blood relatives, the entire amount is tax exempt and need not pay the taxes.
If you have received from non-relatives, the amount is taxable.

I would like to hear some more details to give you the clear answer.

Do you have any other income?
What is your age?
Have you paid tax for previous year?

Thanks,
Krishna

February 1st, 2010 at 7:18 pm
Ryan Kiran said:

Hello dear Sir,
Thank You for the responce.
Sir, here in your previous answers for the other queries- you answered that, If the amount is received from the Non-relative NRI’s is Tax exempted.
So, I received the amount from Relative NRI’s & Non-Relative NRI’s. Is the amount is taxable.
1). Yer sir, I have other income which I earn Rs. 1 Lac/year.(approx)
2). I am 24 years old.
3). Yes, TDS. (ITR filed & my previous year income is Rs. 1.1 Lac)
Sir, Please reply to my previous query & this query too.
Thanks in advance,
Ryan Kiran.

February 1st, 2010 at 8:24 pm
krishnas said:

Hello Ryan,

The gift you received from non-relatives will be taxable above Rs.50000. Do you have any other doubts?

Thanks,
Krishna

February 2nd, 2010 at 7:50 pm
CHARLES said:

Hello Sir,
Is Money Receipt From NRI Friend Taxable In India?

One of my friend is working in some other country and used to send some money(5 Lacs for my medical treatment) from there in my salaried account in India on which he is already paying tax there.
My question is:
1).Will it going to be taxable for me as well?
2).I am a disabled.Is there any Tax exemption for disabled? (physically, above 80%)

Thanks in advance.

February 3rd, 2010 at 2:25 am
Ryan Kiran said:

Hello sir,
Thank you very much for your answer.
Please can you say How much amount of Income Tax I have to pay for Rs. 8 Lac.(which I received as gift fom NRI friends)

Thanks,
Ryan Kiran.

February 3rd, 2010 at 2:48 am
krishnas said:

Hello Ryan,

That kind of calculation we can not do from here. It is better to consult any finance person near by your place.

Thanks,
Krishna

February 3rd, 2010 at 3:41 am
krishnas said:

Hello Charles,

If the money is received from non-relative, then it is taxable.

Thanks,
Krishna

February 3rd, 2010 at 3:43 am
Manohar said:

Dear Sir,
On behalf of all the readers, I would like to thank you for giving such valuable information.
If possible, Can I get your contact details. I need to discuss with you about gift. My email ID is manohar_shelke@sify.com I am ready to pay your consultation charges. – Manohar

February 3rd, 2010 at 8:02 am
CHARLES said:

hello sir
I am a disabled.Is there any Tax exemption for disabled? (physically, above 80%)

Thanks in advance.

February 3rd, 2010 at 11:43 am
krishnas said:

Hello Charles,

Yes. There is exemption for the disabled person.

Thanks,
Krishna

February 3rd, 2010 at 7:00 pm
krishnas said:

Hello Manohar,

I will be contacting you personally.

Thanks,
Krishna

February 3rd, 2010 at 7:02 pm
CHARLES said:

Hello Sir,
can you tell which are the tax benefits for disabled?

I am 23 years old.
I have 1 ULIP.
Premium-12k/year. Sum assured-408000. 20 years plan.
Other income source- 1 lac/year.

Thank u in advance.

February 7th, 2010 at 12:55 am
Jaladhi desai said:

Hi,

I would like to know the new limit for gift from relatives?
Can it be Cash?
whats is the limit for gift from non-relatives?
if it is 50,000 then, only from 1 non-relative or i can take gift of 50000 from 5 non-relatives and still i will get tax exaption?

Thanking you in anticipation.

Jaladhi Desai

February 8th, 2010 at 3:09 am
aaj said:

the person who give the gift has to give the tax and how much………..
all answer queries is of only the person who received the tax
please reply soon,,,,

February 9th, 2010 at 12:09 am
Raj said:

Hello krishna,
Can you please let me know how can my dad’s brother give me 3 lakh rs as a gift? It will be tax exempted yeah? Can he give me cash?? How to make gift deed for this? On stamp paper? He cant give me check as he said so its ok if we do gift deed on stamp paper for this cash 3 lakh? How much rs of stamp paper is necessary for gift deed of 3 lakh? Please let me know soon. Thank you very much in advance

February 9th, 2010 at 6:39 am
Sam said:

Hello Krishna,

I must say you are doing a grea job.

Here is my query… I need to send money to my parents for their day to day expenses. Can I send the money through my NRO account which is also connected to my NRE account? or Can my parents withdraw money from NRO account? What would be the tax implications? Do I need to do gift deed?

Also, they do get some retirement income and if they invest that income in FD’s and use the money send by me for their expenses, will there be any problem me sending money to them. What will be tax implications too.

Thanks in advance.

February 10th, 2010 at 7:56 pm
Raj said:

Hello Krishna sir and everyone.. I left my query on february 9th,2010 at 6.39 a.m. Please do reply quickly whoever know..

February 12th, 2010 at 2:10 am
mohit said:

hello krishna, you r really doing a great service for the mankind dear.. thanks and may god bless you.
sir i too have a small query, my parents died and the parental property got tranferred in the name of me and my sister who is married…
1.she wants to gift her share to me by paying the required stamp duty.
2.Is she liable for any gift tax.
3. Am i liable for any gift tax.
4. if i want to sell the property and buy another property after her gift to me within one year am i going to attract some tax
a)on my share of original 50%
b)on my share of 50% which originally belonged to my sister.

February 12th, 2010 at 6:09 am
Naveen Joshi said:

I am a 82% physically disable person. My only source of income is online share trading. Can i receive tax benefits on short term capital gain? If yes, how?

February 13th, 2010 at 4:59 am
Praveen Gupta said:

Dear Krishna,
As far as i knows the limit of 50000 is lumpsum, & if gift given above that limit than whole gift is taxable, language of law is like that. If its under 50000 its exampt, if it goes above 50000 its taxable fully…
Plz clarify. .

February 13th, 2010 at 9:10 am
CHARLES said:

Hello Krishna,
You are doing wonderfull job.
whats is the limit for gift from non-relatives?
if it is 50,000 then, only from 1 non-relative or can I take gift of 50000 from 5 non-relatives and still i will get tax exemption?

Thank you.

February 15th, 2010 at 4:12 am
Rakesh said:

Dear Krishna,
Let me first give you a big applouse for doing such service through this blog.
Sir,
I have some query , I have given a gift of Rs. 200000/- to my wife who is a housewife by transferring the amount in her saving account from my salary account,she invested the amount in the share market through a trading account in her name. During the year 2009-10 she made a profit of Rs 60000/- (40000/- as long term gain and Rs 20000/- as short term gain.) The profit will be considered as her income or I have to pay tax on that income if so than on which part of the profit (long term/short term) and how much % I am a govt employee and falls in 30% slab.
Regards
Rakesh

February 15th, 2010 at 9:45 pm
Gagan Garhwal said:

Sir if i recive a fift or Rs. 2,00,000.00 from my father whether it is exempt from income tax. Kindly tell me is gift deed is necessery.

February 16th, 2010 at 3:45 am
chandrika said:

Hi people,
I am an LIC consultant for past 17years.KIndly drop in your mail id or mail me at chandrikanandhakumar@yahoo.com for any kind of queries or services from LIC

February 18th, 2010 at 8:21 am
vishant said:

for disabled person whose income is Rs.240000/- per annum… how much income tax is payable, if insurance and gpf contribution amounts to Rs.51000/-

February 18th, 2010 at 8:22 am
CHARLES said:

Hello Krishna sir,
You are doing wonderfull job.
whats is the limit for gift from non-relatives?
if it is 50,000 then, only from 1 non-relative or can I take gift of 50000 from 5 non-relatives and still i will get tax exemption?

Thank you so much in advance.

February 21st, 2010 at 12:39 am
m g said:

Hi,
i got married 6 years ago. my wife received jewellery from her mother at that time.
she had not made any gift deed that time. can the same be made now? please tell. do it requires to be shown in the returns?

February 22nd, 2010 at 2:23 pm
Ansh said:

Hello Krishna,

The information here is really useful.

Can you please tell me if there is any tax applicable on the amount received into my NRE account from any of my friends or relatives who also are staying abroad but not transferring from an NRE account and just a normal foreign bank account.

Thanks & Regards,

Ansh

February 24th, 2010 at 7:11 am
rajeshwari said:

Sir,

I wanted to know the tax implication on either party.. My father wants to transfer his land to me and to my brother. Whether we need to pay gift tax for the same..?
thanks

February 25th, 2010 at 7:10 am
H N Ravi said:

My mother who is now 76 years of age, has over time saved in Post office around 10 lakhs.

Because of her old age and bad health wants to give me Rs 8 lakhs.
I am myself an assesse, and am paying tax of Rs 35,000/=.
Can i accept the money and how should I account for the same.
On acceptance am I liable to Pay tax.

Please inform.
With regards,
Ravi H N

March 1st, 2010 at 8:48 am
Samuel said:

Hi,

My father transferred money to my account in lakhs towards purchasing a house through NEFT or Internet Banking of the same Bank.Is this money taxable as it was not transferred by Cheque or DD ?We have never involved in cash transactions.

Thanks.

Regards

March 5th, 2010 at 3:58 am
Sulochna said:

Hi
I have received a gift Rs. 500000/- from my real uncle (Father’s Brother) Is it Tax Exempted??????????

March 18th, 2010 at 1:47 am
JP MAKWANA said:

If I give a gift of shares worth 5 lacs to my son and he sells immediately what will be his tax liability and under what head the realisation of shares will be talen?

March 20th, 2010 at 2:13 am
Dharam said:

If I sell a house and gift that entire money to my father, do I have to pay income tax.

March 21st, 2010 at 9:05 am
Sharon said:

Hi Sir. I’m a Taiwanese
I sent an amout of money thorugh foreign exchange to my Indian boyfriend. Can i call the amount a “gift”? Cuse now it’s income tax time in India so i’m so concern if there will be any tax that he should pay due to this transaction…
He does not have a job as of yet.. do people whom does not have a job but have a huge saving in the account need to pay income tax??? Really worried.. Plz help me out! Thanks a million!!!

March 25th, 2010 at 10:11 am
M G Shenoy said:

my mother and myself are holding 1000 L&T shares since 3 years . She is the first holder. We inherited the shres from my father. My mother wants to sell all these shres and gift the sale amount to my son to buy a flat.
1. Is Gift tax is applied in this case?
2. If so, who will be paying the gift tax?
3. Is Capital tax is applied in this case?
4. how much will be the Capital gain tax?
Please answer these points of doubts.

Regards
MG Shenoy

April 2nd, 2010 at 3:25 am
Irfan said:

Hello krishnas,
I’m a Canadian citizen and my dad is in India and wants to gift me money via gift deed. Can this money be bought to Canada, and if so what would be the maximum amount allowed? What are the tax implications for either party?

Any help would be much appreciated.

April 8th, 2010 at 9:05 pm
neelu rathor said:

hi, i have a two year old daughter. If my mother gives her gift in the form of cash. will it add to my income. what is the maximum amount she can gift my daughter.

April 19th, 2010 at 11:36 pm
John said:

Dear Sir,

I read your website and am very impressed with your work and knowledge. You are indeed so helpfu! God bless you. Can you please help me with a rather strange query, urgently. My father died and my mother is now the sole owner of the house. She intends to sell it. She stays with her daughter and is solely on her side and intends to give her the major share and do injustice to me though I am her son. However, she has finally decided to give me a small share of my rightful inheritance, as she knows she is being grossly unfair. Please let me know the following:

1) the best way to receive this payment. By cheque?

2) In view of our very strained relations would it be wise to take it as a gift (alongwith a gift deed)? Should it be specified that the gift is non-refundable? Can a donor demand back the gift?

3) You have said that the income generated from a gift is clubbed with that of the donor. Since our relationship is strained, this is not possible. So please advise how best I should take my monetary share(whatever little of it).

Thanking you for all your kind help and best regards.

I await your early reply.

Yours sincerely,

John

April 24th, 2010 at 8:35 pm
amit kumar jain said:

hi sir

if a person receive certain sum as a gift from his father-in-law( father of wife). is this gift fully exempt from any tax liability ?

April 28th, 2010 at 8:44 am
sumit said:

if i get a lac from my father by a cheque
1. is that money tax exempt
2. if so , do i have to get a gift deed signed by him.
please reply

May 14th, 2010 at 8:28 pm
Webkarma said:

I received a sum of INR 11 Lac from my MAMA (My mother’s real brother). As per your article, is this money free from TAX ?

pl suggest

May 16th, 2010 at 9:49 pm
PRAKASH said:

Dear Sir,
Can i take gift form son from my married sister.
plz reply.
thanks,

May 21st, 2010 at 4:09 am
PRAKASH said:

Dear Sir,
if i take gift for my son from my married sister, it is taxable or non taxable.
plz reply.
thanks,

May 21st, 2010 at 4:11 am
Vivek said:

I want to gift 3,00,000 as gift to my father to pay off the home loan, is it taxable to my father? as per rules it is not but wanted to clarify.

oter way to look at this is, I am paying of my Father debt, is it taxable to either party?

May 21st, 2010 at 5:42 pm
Viren said:

Dear Sir,
First of let me thank you for the simple explanation to all query raised by different peoples. Most of the sites gives reply in such a manner which is no different from the statue books. Hence that seems to be quite complicated. So lot many thanks.

2. i need a simple reply regarding gift tax.
My brother owns a immovable property(shop valued nearly 35 lakhs). He has two minor sons.
a)Whether he can gift the shop to my son without any consideration.
b) whether it is taxable
c)Apart from the gift deed any other documents are required to claim exemption
d) any other formalities are requires for this purpose.

Thanks & Regards
Viren

May 27th, 2010 at 12:00 am
susan said:

Hi !
My friend who is a resident of India & having his business set up there. If he want to sent money from Dubai without tax- will it be possible to add one partner & to sent money from from Dubai [who is working in Dubai]

June 2nd, 2010 at 2:38 am
Pragati said:

Sir, if a person get lottery from foreign in India, (like our icici , Mahindra club etc saying that ur mobile no is selcted and u will get assurred gift).
Morethan the amount specified by u i.e 5,00,000.00
Kindly inform wether the person is liable to pay I. Tax.

June 6th, 2010 at 2:14 am
ICICI Bank Care said:

Dear Pragati,

These are misleading messages being sent to customers of various Banks stating that funds need to be credited to their account with respect to some lottery / inheritance / job offers / international funds transfer. We urge you not to react or share any information in response to such communication.

Regards,
ICICI Bank Customer Service Team.

June 10th, 2010 at 5:28 am
Atul Bhatia said:

This blog has been by far the most lucid that I have seen on the subject. Thanks for putting it across so simply.

My doubt relates to how the gift is to be declared. I transferred some money to my wife; in which Part and serial number of the ITR-2 do I reflect it? Do I have to reflect it in my return as well, or is it only my wife who has to show it in hers?

I would be grateful for your expert advice in this matter.

June 12th, 2010 at 4:46 am
Abraham said:

Dear Sir

I’m an NRI account holder working in UAE. I used to transfer every month some money to charity trust account from my NRI account; is their any tax problem or any limitation to make such transfers?

Expecting your valuable reply.

June 15th, 2010 at 5:40 am
Ashish said:

Hello Krishna,

My brother was in US for project work last year (total 2 years in US). Last year I bought a home for myself and one for this brother on power of attorney. Since I was short of money – this brother transferred around 5 lacs to my account (India savings account) which I used to make down payment for his house and my house (partially). Now the brother is back in India, I want to return his money but not sure if I should do gift deeds for such transaction or I can do onlin transfer for such big amount (tax perspective).

All our money is tax paid when earned. Need to know complications around this.

Thanks.

June 18th, 2010 at 3:03 am
Kunwar Raja Babu said:

Very simple explanations of all queries.

Appreciable.

June 21st, 2010 at 11:14 pm
Sunny said:

Dear Sir,

My wife is a housewife & is not earning any income through any source. I am a businessman & if I gift my wife Rs. 10 lakhs a year. Then 1st is this gift taxable & 2nd can she use this amount for household expenses like paying house rent, electricity bills, school fees for my kids etc.

Regards
Sunny

June 30th, 2010 at 7:02 am
abhishek said:

Hi,
This is Abhishek, one of my far off relative has purchased a flat worth 11lakhs rupees and wants the flat to give it to me.

Please let me know the obligations that I may face to get this done?
Also do i have to get that registered under my name? if yes then how much money do i have to pay as per Indian law?

or if I dont have to get that registered under my name(as its registered under my relatives name) then how much money do I have to pay for that ?

Please reply at the earliest

July 3rd, 2010 at 6:30 am
dipankar said:

Recently I opted VRS. In F.Y I will be in 30% tax slab. Can I gift portion of my money to my daughter and house wife and they invest and pay 10% tax? what would be the limit of cash gift?

July 4th, 2010 at 7:42 am
Abid said:

I want to gift my son-in-law a residentail house, he has no house at present. Please clarify tax exemption for me and him.

July 5th, 2010 at 5:38 am
Dipankar said:

Hello Krishna,

If I gift Rs.10 Lakhs to my wife (with gift deed in place), as per some of your reply’s in this blog, the interest income from such gift need not be considered as part of my taxable income.
But in the article “Clubbing of Income”, it is mentioned that the interest income from such gift also needs to be considered in my income”.
Kindly clarify.

Dipankar

July 5th, 2010 at 7:37 am
Murthy said:

I am Indian, staying in India, One of my friends in USA , he is american wants to give me gift of 1Million dollars for my marriage anniversary, is it taxable in india

July 11th, 2010 at 9:56 pm
Dhawal said:

i received a gift by way of cheque from the spouse of my father’s brother. is it liable for tax.

July 13th, 2010 at 12:08 am
BINAYAK said:

DEAR SIR,
i ve taken loan for my sister marriage,does it necessary to show this in the balance sheet?if yes, thn how to show in the b.sheet? i guess in the liabilities side i ve to show ” gift to sister” & this amount will be deducted from my capital.please help, as i am a tax payer & running a retail grocery shop.what it would effects on my b.sheet? please help.

July 17th, 2010 at 12:58 am
RAJESH CHHEDA said:

Sir,
pl. answer me that i want to pay medical expenses of other person not known to me of Rs. 300,000/-
Is this money taxable in the hand of receiver as Gift?
Thanks in advance

July 24th, 2010 at 11:45 pm
unnat said:

dear sir,
i want to gift 6,00,000(6 lakh) to my wife which she will invest in share market.Is the money is taxable and by which way i gift this money to my wife. is the earning from that money is taxable income on my part or my wife

July 30th, 2010 at 11:06 am
D.Kaliaperumal said:

Sir,

I am donating @600/- per month to the old age orphanage at Kumbakonam whether it is attract the 50% exemtion under IT Act 80G

August 2nd, 2010 at 9:19 pm
ATUL GUPTA said:

I want to know that If i made a gift to my son who is NRI and was not taxable in India and also does not have PAN no. He will made the FD to the said gift amount in India then what is the procedure to follow by him to assess under Income Tax act.

August 14th, 2010 at 3:18 am
Rohan s said:

Hi am an nri from UAE. I have been living here for the past two years. I have transfered and invested 20Lakhs on my mothers name. Will that be taxable…?since income in uae is not taxable and india does not have any double taxation policy with uae.. Should I make a gift deed and keep it with since I have invested..? I am a joint holder in that investment… Plz help n guide.

August 14th, 2010 at 7:04 am
Anne-Marie said:

I am in the USA. If a vehicle is donated to a Non-profit organization & then the non-profit organization wants to donate it to a needy family, what forms need to be filled out for the donation to the needy family & does that family have to claim it as income?

August 23rd, 2010 at 4:35 pm
Shailee said:

hi..
i wanted to know that if my husband gifts me a certain amount of cash, in whose hands will the income generated from that gift money be taxed? Will it be clubbed in my husband’s income since he has gifted me the money or will it be considered as my taxable income?

August 26th, 2010 at 8:03 am
Raj Kumar said:

how much the value of stamp paper required for any type of Gift given to relatives?

August 26th, 2010 at 8:51 am
Ritu Saxena said:

Hi,

Thank you for clearing the doubts on these complex issues. Just wanted to check with you:

1. If my mother-in-law gives Rs. 15 lacs to my husband from her NRE a/c , what will be tax implications for her and my husband?
2. This NRE a/c is held as a joint a/c with my bro-in-law (Devar) who lives in US
3. My mother-in-law is a house wife. Basically my bro-in-law gave money to her and she is giving this money to my husband to buy a house.

I know the queries are never ending…but I am really confused.

Pls Help.

Thanks.

Ritu

August 31st, 2010 at 4:09 am
kaushik said:

Sir my question is if my father, my brother ,my wife and father in law gift me 50,000 cash each is any one of all including me taxed.
in case of proof if i show it on 100 rs stamp paper what should i mention to make it tax free.

September 2nd, 2010 at 3:09 am

Income Tax Exemption and Rules on Gifts as Income of Source

Introduction

Gifts received From Relatives

Gifts received From Non-Relatives

Marriage Gifts

Special Tax Exempt gifts

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Income Tax Exemption and Rules on Gifts as Income of Source

Introduction

Gifts received From Relatives

Gifts received From Non-Relatives

Marriage Gifts

Special Tax Exempt gifts

Related posts:

259 Comments on this post

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