Tax free limit for cash gift from parent's & gift deed

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ahmadmfaridi (Querist)
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09 February 2012 MY QUERY
1. WHAT IS THE TAX FREE LIMIT FOR CASH GIFT REVIVED FROM PARENTS BY ADULT CHILDREN.
2. HOW MUCH CASH PARENTS CAN GIVE AS GIFT TO THERE ADULT CHILDREN
3. IS THERE ANY GIFT DEED REQUIRED TO BE MADE, IF YES THAN WHAT WILL BE STAMP DUTY, AND PERFORMA OF THAT DEED

PLEASE GIVE INCOME TAX REF. ALSO

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 February 2012 1. TAX FREE LIMIT- NO LIMIT. AMOUNT OF GIFT IS EXEMPT.SECTION 56(2)(Vii) may be referred.

2. PARENTS SHOULD KEEP CERTAIN AMOUNT AS PROVISIONS LOOKING TOWARDS THEIR OLD-AGE AND
DIMINISHING EARNINGS.

I AM NOT IN FAVOUR OF GIVING GIFT TO ADULT CHILDREN. IT IS BETTER TO GIVE THEM LOAN IF
PURPOSEFULLY REQUIRED.

HOWEVER, IT DEPENDS UPON THE PARENTS, HOW MUCH THEY WISH TO GIFT.
.
3. ON STAMP PAPER OF RS. 100/- GIFT DEED CAN BE DRAFTED.
.
FORMAT OF GIFT DEED MAY BE SEARCHED ON THE NET OR EITHER WAIT ...IT WILL BE PROVIDED BY ANY OF THE EXPERTS.

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CA. Hari Kishan

CA. Hari Kishan (Expert)
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09 February 2012 GIFT DEED

This deed of gift is made on this 24th Day of October 2007 at Bangalore.
By Smt. ______________ aged about 74 years permanently residing at ____________________(‘Donor’)
In favour of
Sri__________S/o _____________ aged about 25 years permanently residing at ___________ (‘Donee’)

1. That this day I _________ ‘the donor’ has gifted a sum of Rs.2,00,000.00 (Rupees Two lakhs only) to ‘Donee’ hereinabove by way of cash as gift.
2. That the said gift was made by me out of my self acquired and self earned income / assets and none of my successors / heirs shall ever dispute or call in question the said gift made by me to the said _________.
3. That the said gift was made by me unconditionally, without any expectation, whatsoever, in return from the said __________.
4. That I shall have no right, title, claim, and interest or demand whatsoever on the said gift in future and the said ___________ shall use the gifted amount in the way he thinks fit for.

5. That I ‘the Donor’ shall have no right over the gifted amount. Further, I also declare that the amount gifted and any accretion thereon shall be the individual property of ________.
6. That I ‘the Donor’ declares that I have made this declaration in sound health and perfect mental condition and this gift is an irrevocable gift.
7. In witness where of Donor and Donee has put their signature to the said deed as a token of their acceptance on the day month and year mentioned first above before the attesting witness.
Witness:
1.
DONOR
2.
DONEE

ACCEPTANCE

I Sri.___________S/o __________ aged about 25 years permanently residing at ________________ hereby confirm that I have accepted the above gift as stated above.

DONEE

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CA. Hari Kishan

CA. Hari Kishan (Expert)
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09 February 2012 Hope the gift deed suffice the requirement.. modification are suggested suiting to you..

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