Gifts givien

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pranjal (Querist)
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13 October 2012 respected members,
please answer this query.
Mr a has given 600000 to his wife and 50000 to his son as gift.
1. what are the tax implications?
Acc. to me it is exempted(650000)

2 During the scrutiny proceeding the ITO ask me to show some legal document which is registered and on that 1 or 2 % of the gift amount is payable?
What is this document and where it should be registered.

Please tell me

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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14 October 2012 Since Wife and Son fall in the definition of Relative therefore the Gifts even though in excess of Rs.50000/- are not taxable u/s 56(2)

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CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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15 October 2012 Gift deed shall be made and registered.

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CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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15 October 2012 Gift deed is mandatory but registration is optional

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pranjal

pranjal (Querist)
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16 October 2012 thankyou for the answer,
But were it should be registered and what is it written in any section or law about the same, as i have not found that.
please reply at the earliest.

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