David Hume (5 Points)
03 April 2017Hi, My mother has issued cheques and given them to my wife for purchase of car. Those cheques will be in favour of a car agency towards payments for the car purchase. The car will be registered in the name of my wife. So the car would be paid for by my mother but the car will be registered in my wife's name. Whether it will be exempted from gift tax? My mother is a tax paying individual. Please reply. Thanks.
David Hume
(5 Points)
Replied 04 April 2017
Car agency said that it can be done the way I mentioned. Please guide.
One more query. Whether my wife, who is a non tax paying individual ( as no income ) can deposit my mother's cheques (total Rs. 10 lacs) in her bank account and pay for the car herself? If yes, whether she needs to file IT return? What would be the tax implications on both my wife and mother? Thanks
for ur mother u have to declare source of income of 1000000/-
if IT return filed fine your mother will gift amount to your
wife through cheque and she will purchase the car
just prepare a gift deed and register it and no tax liability on
your wife since it is gift and it is not taxable but dont forget
to filed return othser wise income tax notice will come for
purchase of car
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