08 December 2009
Gift to your parents by cash (cheque) or property is exempted as parents as you are the lineal descendant of the parent(s). You only have to make an affidavit of your relation with the receiver of the gift for on the spot verification by the AO if called upon.
Income your parent(s) earn from this gift will not be taxed in your hands.
08 December 2009
thanx Mr sunil and Mr C ajmera for solution. but i want to know this type of gift can also be given to father who is already earning by pension and paying tax. or what is the limit of this type f cash gift to mother? or for this hav to ask deduction at the sourse. if u can explain the general procedur as i m a central govt employee. regards
08 December 2009
You can give Gifts to your father and mother by making Gift Deeds; even though either of them is earning.
There is no limit to give cash gift.
But care should be taken to prove the source of cash i.e. you should have sufficient proof readily available that this much cash you were possessing as owner.
It is better that soon after gift is made in cash; the same is deposited into the bank account of donee.
TDS are not applicable on Gifts. Just give the money to your parents whatever your desire.
I appreciate you for making gifts to your parents.
12 December 2009
hi thanks Mr surendra kumar Akhecha. one more que that if i provide the proof before dec so can i file return or the income tax which is already beaing cut till now. regards
CAclubindia
