Taxability on gift received from mother and father

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2015 Dear Experts,

My Client has received gift in cheque from mother and father rs 10 lakh from each in fy 2014-15.

what is tax treatment under gift received under income tax act and what is document formly to exempt it like gift deed.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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01 May 2015 Although gift deed of movable property is not compulsory yet it is advisable to prepare one for income tax purposes. As far as taxability is concerned there is no tax implication in your client's hands since mother and father are his relatives and any gift received from relatives are exempt in the hands of recipient. There are no clubbing provisions applicable in this type of gift in the hands of parents as well.