Gift deed requirement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2014 A client of mine wishes to split some money into the account of wife and kids and thereby purchase some mutual funds. My query is:
1. Is there a requirement to execute a Gift Deed?
2. Can he do so?
3. Tax Liability on such transaction?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

11 November 2014 1, yes he can do so.

2, gift deed is always preferable

3, the gift wont attract any taxation. However, the any taxable income earned on the mutual fund investments will be clubbed with the husband's income