Gift Deed
This query is : Resolved
29 May 2010
I want to make a gift in cash to my relatives & one of my friend. is it necessary to have a gift deed. if yes has it to be on stamp paper or plain paper. Is there any restriction on the amount of gift in cash.
is it necessary to get the gift deed noterised.
Please help with the draft of Gift Deed in cash.
is it necessary to get the gift deed noterised.
Please help with the draft of Gift Deed in cash.
29 May 2010
Gifts received From Relatives
As per the Income tax act, the Gifts received from any of your relatives are fully exempt from tax. Whether you are received the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts. Here the “relatives” term defines by the Income Tax act as follows :
1. Spouse of the individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. Any lineal ascendant or descendant of the spouse of the individual,Spouse of the person referred to in clauses (ii) to (vi).
For example if you are receiving gift of Rs.100000 from your uncle ( your mother’s brother), it is fully exempt from the Tax. Whenever you get the gifts please apply the relations in the above list to ascertain whether you are liable to pay any tax for the received gift.
Gifts received From Non-Relatives
Here non-relatives means anyone who doesn’t come under the above mentioned relation for you. In this case you are tax exempt up to maximum of Rs.50000 for a financial year. If you receive the gift worth more than Rs.50000, you are liable to pay the tax what ever you received excess of the limit. This rule applies when the gift is a sum of money, whether in cash, by way of cheque or a bank draft. If any other kinds of gifts are fully exempt from the tax.
For example you are receiving a gift of Company Shares from one of your team mate in your company. It is not coming under the tax liability. But, when you are receiving a gift of Rs.100000 (cheque) for the best performing in your company (not a bonus), Rs.50000 is liable to pay tax.
Marriage Gifts
One very happy feature of the provision of taxation of gifts is that any gift received from any person on the occasion of the marriage of the gift’s recipient would not be liable to income tax. There is no monetary limit attached to this exemption.
As per the Income tax act, the Gifts received from any of your relatives are fully exempt from tax. Whether you are received the gifts as Cash, Cheque or any goods. You are not liable to pay the tax for these gifts. Here the “relatives” term defines by the Income Tax act as follows :
1. Spouse of the individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. Any lineal ascendant or descendant of the spouse of the individual,Spouse of the person referred to in clauses (ii) to (vi).
For example if you are receiving gift of Rs.100000 from your uncle ( your mother’s brother), it is fully exempt from the Tax. Whenever you get the gifts please apply the relations in the above list to ascertain whether you are liable to pay any tax for the received gift.
Gifts received From Non-Relatives
Here non-relatives means anyone who doesn’t come under the above mentioned relation for you. In this case you are tax exempt up to maximum of Rs.50000 for a financial year. If you receive the gift worth more than Rs.50000, you are liable to pay the tax what ever you received excess of the limit. This rule applies when the gift is a sum of money, whether in cash, by way of cheque or a bank draft. If any other kinds of gifts are fully exempt from the tax.
For example you are receiving a gift of Company Shares from one of your team mate in your company. It is not coming under the tax liability. But, when you are receiving a gift of Rs.100000 (cheque) for the best performing in your company (not a bonus), Rs.50000 is liable to pay tax.
Marriage Gifts
One very happy feature of the provision of taxation of gifts is that any gift received from any person on the occasion of the marriage of the gift’s recipient would not be liable to income tax. There is no monetary limit attached to this exemption.
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29 May 2010
IT IS ALWAYS ADVISABLE TO HAVE A GIFT DEED IN PLACE ON A STAMP PAPER. IT NEED NOT BE NOTARIZED.
29 May 2010
KNOW ALL MEN BY THESE PRESENTS that I, _____________ S/o Sh.___________ r/o ____________________, transfers voluntarily, the property bearing no.___________ situated at _______________ (more particularly described in the schedule annexed hereto), the estimated value of which is Rs._____________ (Rupees_____________ only) to my daughter Smt.____________ w/o of Sh._________________ (hereinafter referred to as "the donee") To Hold the same to the donee absolutely forever. I further declare that the said gift has been made by me out of my natural love and affection for the donee and the same has been accepted by the donee.
IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.
Witness:
1. DONOR
2. DONEE
I, Smt. ______________, the donee hereby accept the gift of the said property.
IN WITNESS WHEREOF, I have executed this deed this ________ day of __________.
Witness:
1. DONOR
2. DONEE
I, Smt. ______________, the donee hereby accept the gift of the said property.
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29 May 2010
Thank U Sir for your prompt reply
Can u please provide me with the draft of gift deed for gift of cash.
Can u please provide me with the draft of gift deed for gift of cash.
29 May 2010
INSTEAD OF PROPERTY ENTER CASH GIFT. FORMAT IS SAME JUST MAKE A FEW CHANGES.
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29 May 2010
Very good explain Mr. Gupta
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