Gift

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2011 i want to gift some cash to my sister.A mere transfer by account payee cheque is enough or i need to do some paper work also.Please advise.

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CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 It is advisable to write a simple gift deed on a Rs. 10 stamp paper.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 August 2011 No need of stamp paper for the gift of movable property. A letter of gift in paper signed by donator and donatory will suffice.

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CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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07 August 2011 Yes no need for writing the same on a stamp paper, but to avoid any dispute in future, it is a good option as stamp paper enforces its legality.

In one of my cases, the client refused after 3 years that it was a gift and he said that he gave the same as a loan, to avoid problem like these it is advisable to write the same on a stamp parer.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 August 2011 I agree with the experts that it is not needed but you should have some document in form of a forwarding letter to the cheque showing your intention of giving gift otherwise it may be resumed that it is a loan and in future there might arise some dispute.

So at least send some letter along with the cheque stating that this amount is gift to your sister and mention the relation also.

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