29 July 2016
My client received Rs. 2,00,000/- from his mother in A.Y. 2013-14 and deposited the same to bank. However he has not filed the Income tax return for that year. Now he has received a letter from income tax regarding non filing of Income tax return for the said Assessment year clearly stating of cash deposit of 2,00,000 or more in an banking company. There was no execution of Gift deed at that time. What to do now? will it be taxable in hands of My client. Is gift deed necessary to be executed? Please help.
30 July 2016
Gift received from a relative is not taxable u/s 56 of the Income Tax Act, 1961. Gift deed is desirable to show an evidence recording the transaction. A formal letter from your client's mother stating the details of gift towards love and affection on her son with components such as heading (GIFT) date and place of execution, recitals, amount and details of gift, attestation by at least two witnesses (mandatory for gift), acceptance by the donee (mandatory for gifts) on the same letter / deed. In case of cash payment, revenue stamp of appropriate value has to be affixed.
02 August 2016
Non-judicial stamp is necessary for conveyancing property, commercial agreements, making Power of Attorney, etc., Since it is a cash transaction revenue stamp is sufficient. Non-judicial stamp paper is not necessary. Show the acceptance of donee on the same letter (you may title it as Gift deed, Gift, etc.) on revenue stamp.
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