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agreement on gifts

Deepesh Ashwin Shah (Chartered Accountant) (141 Points)

27 November 2010

Is execution of gift deed necessary. on receipt of money as gift (by cheque) from a) relative and b) non relative? - cant see any such provision but seems its has come through practice. confim?

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5 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 27 November 2010

Dear Deepesh,

1) Gift received from relative is Non - Taxable, but it is advisable to make a gift deed between the Donor and Donee whena a gift is given by donor and accepted by donee.

2) Gift received from Non - relative is Taxable. Thus there is no point in making a gift deed in case of non - relatives.

Thank You,

Regards,

Devendra Kulkarni

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Deepesh Ashwin Shah (Chartered Accountant) (141 Points)
Replied 01 December 2010

does the agreement requires to be registered?

Sunshine (Helping All) (10575 Points)
Replied 01 December 2010

well to have a valid contract as per THE INDIAN CONTRACT ACT,1932,...the gift agreement needs to be registered.....or else the agreement will be void due to lack of consideration..

CA PuRvI M!$rA (-) (2260 Points)
Replied 01 December 2010

Originally posted by : Devendra
	Dear Deepesh, 1) Gift received from relative is Non - Taxable, but it is advisable to make a gift deed between the Donor and Donee whena a gift is given by donor and accepted by donee. 2) Gift received from Non - relative is Taxable. Thus there is no point in making a gift deed in case of non - relatives. Thank You, Regards, Devendra Kulkarni