Gift and gift deed

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2015 1. A son, who is a NON RESIDENT for the current financial year, want to gift his father (RESIDENT), some money amounts , by sending money from abroad, into the bank account of his father in India.

Can he give such gift legally?
Is a non-resident son, allowed to gift money amounts, to his resident father, as per the income tax act?
And Is such NON-RESIDENT person eligible to make and sign GIFT DEED, for such gift transactions?

2. Will a resident father have to pay any income tax, on Money sent by his NON-RESIDENT son, from abroad, into his father’s bank account in India?
In such case, What is the maximum exemption limit of receiving Money as GIFT , upto which , no income tax is to be paid?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 February 2015 1. He can legally give such gifts to father.
As per income tax act such gifts are allowed.
No gift deed is required being amount transferred through banking channel but a confirmation letter is required if any query is raised by tax authorities.
2.Such money sent by son to father is fully exempted without any limit.

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Rupesh Jain

Rupesh Jain (Expert)
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24 February 2015 you can make gift deed its better for future.

and gift is not taxable in hand of father.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2015 If gift of money is received or given during the financial year, by preparing and signing GIFT DEED,
then,
in addition to the GIFT DEED,
will the donor or donee have to file any GIFT RETURN?

OR is there any type of DECLARATION to be submitted?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 February 2015 No gift return to be filed or declaration submitted.