Gift

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2010 Please advise.

A car is purchased partly out of following amounts:
1. cash gifts received on marriage from various relatives and
2. bank finance of Rs.1.5 lacs taken by father in law who undertakes to repay the principal with interest.

1. Whether the bank finance taken by the father in law should be treated as gift? If yes then what will be the amount of gift that is to be mentioned in the gift deed - the principal, the principal with interest or the EMI?
2. How much should be the value of stamp paper for the above bank finance and for a cash gift of Rs.50K as per the stamp laws prevailing in the state of Jharkhand?
3. What will be the tax incidence if the car alone is gifted as car is not covered under the definition of property u/s 56 and what should be the value of stamp paper for gift deed in that case?

Deepak Goel

Deepak Goel (Expert)
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30 May 2010 Any amount of gift received on marriage is non-taxable and any amount of gift received from faterther in law is also non-taxable u/s 56 of the Income Tax Act.

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2010 Thanks for your reply.

But my question here is whether the bank finance should be treated as gift, The treatment of gift of car and the stamp paper requirements.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2010 Thanks for your reply.

But my question here is whether the bank finance should be treated as gift, The treatment of gift of car and the stamp paper requirements.

Deepak Goel

Deepak Goel (Expert)
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31 May 2010 Finance from Bank never treated as Gift. Any sum received without any consideration is treated as Gift but bank has charge interest so this is not treated as gift