Gift tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2012 Hi,

Would like to know, can a mother make a gift of 5Lacs (in cash- via cheque) to his son. Is there a cap on the maximum amount. Is a gift deed required to be made even if the transcation is between son and mother.

Regards
Anish

aadish

aadish (Expert)
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01 October 2012 While in an assessment proceedings to justify a gift, two things are required: 1. Credit worthiness of the donor 2. Genuineness of the transaction In support of the above following things are required: a. Gift deed stating the details of the payment made i.e. cheque no date amount . There may be one deed for all gifts made. b. Copy of the Bank a/c of the donor just to justify that donor had sufficient balance to pay the amount. If before giving the gift cash is deposited and cheque is issued, it may creat several questions like where the cash was lying, what is the source of cash etc c. Income Tax computation of the donor d. Income Tax Acknowledgement of the donor and copy of the Balance sheet if available.
yes its better to have gift deed for avoiding any future problems