Taxability of gift by mother to married daughter

This query is : Resolved

CHIRAG R AHUJA (Querist)
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26 June 2014 PLEASE SUGGEST ME TAX LIABILITY FOR THE FOLLOWING TRANSACTION.

A MOTHER WANTS TO GIVE CASH GIFT OF RS.5 LACS TO HES MARRIED DAUGHTER.

WILL THE ANSWER BE DIFFERENT IF THIS GIFT PAID BY CHEQUE. AND ALSO TELL ME HOW THE MOTHER WILL TREAT AS AN EXPENSE OR ANY OTHER HEAD....?

please reply as early as possible

Thanks

Sandeep Dharar

Sandeep Dharar (Expert)
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26 June 2014 Gifts received from relatives are fully exempted from Tax, whether in cash or kind. So the cash gifted by mother to daughter is exempted from tax in the hands of the daughter.

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CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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26 June 2014 Gifts from Relatives are exempted from Tax whether in cash or cheque. Moreover their is no limit on the threshold amount. Gifts are not expenses. The Person who receives the Gift will add it to her Capital (Daughter) and the Mother will show as Drawings from Capital Account

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