Gift tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 February 2013
Mr. X's daughter got married in Nov. 2012. She received cash gifts worth Rs. 15 Lakh which she did not deposit in bank. Now in February Mr. X is planning to buy a life insurance policy for which he wants to utilize that cash of Rs. 15 Lakhs (Which the bank has agreed to take in cash)for policy premium. Now the question is how should Mr. X show this:
a. Either he can show that his daughter gave him gift through cheque (which will be exempt being relative and then he can buy the policy himself.
b. Other option is his daughter can propose a policy for Mr. X. In this case the gift-to-father transaction will get eliminated.
I want to ask which option is safe.
And whether AO can ask that why she did not deposit the money in bank for 4 months.
Or any other problem which can arire in these transactions. Please reply ASAP.
a. Either he can show that his daughter gave him gift through cheque (which will be exempt being relative and then he can buy the policy himself.
b. Other option is his daughter can propose a policy for Mr. X. In this case the gift-to-father transaction will get eliminated.
I want to ask which option is safe.
And whether AO can ask that why she did not deposit the money in bank for 4 months.
Or any other problem which can arire in these transactions. Please reply ASAP.
10 February 2013
first of all, you need to deposit the amount into bank,
it will be very difficult for you now to explain that such amount is a gift received at the time of marriage.
Further do not take cheque outrightly and wait for some time so that genuineness can be proved and than take the Gift.
it will be very difficult for you now to explain that such amount is a gift received at the time of marriage.
Further do not take cheque outrightly and wait for some time so that genuineness can be proved and than take the Gift.
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 February 2013
Thanks for your reply sir. But wont it directly raise questions if I deposit that cash into bank. Instead cant it be possible that X's daughter pays the policy premium and insures life of X. Kindly reply ASAP sir.
11 February 2013
Yes, even I said earlier it will be very difficult to prove such received at marriage.
She may contribute to X's Policy premium.
She may contribute to X's Policy premium.
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