Gift rule as per income tax

Gift received from a relative is non-taxable. In your case, it is non-taxable. However, it is recommended to have a documentary proof of the gift received or else the IT dept may invoke section 68 and make an enquiry for the same.

If the gift ,in the shape of land or plot, than gift deed is must on stamp paper and that should be registered.............

The Taxability of gifts is covered U/s 56 of The Income Tax Act. The gifts are catergorised into 2 i.e Movable Properties and Immovable properties.

In case of:-

cash:-  if any person gifts in cash an amount exceeding 50,000/- during the previous year then it will be taxable. Only if it exceeds 50,000 .

In case of movable properties i.e shares securities, Jewellery Drawaings , Pantings,, Sculptures, Archaleogocial Collectiona and any other work of art. If the Fair mArket Value received without consideration during the previous year exceeds 50,000 then the whole of the agggregate FMV of movable properties will be chargeable to TAx.

In case of Immovable properties without consideration and the stamp suty value of which exceeds 50,000 then the stamp duty will be chargeable to tax.. But if the property is purchased for a considerartion   which is lower than the stamp duty value then nothing will be taxable.

Any gift reveived from the following shall not be treated as gift for it to be taxable:-

1. Received from relative

2. Received on the ocassion of marriage

3. Received by way of wll or inheritance

4. From Local authority, fund, foundation,university other eduacational institutuin, hospital and trust U/s 10(23 C)

For relative see Sec 56.

Thanks to all guru,

I would like to know that if  am giving gift to my relative then can i claim income tax examption on that amount ?

Originally posted by : Aakash Jha
	Thanks to all guru, I would like to know that if  am giving gift to my relative then can i claim income tax examption on that amount ?

Yes but gift deed must be registered.
 

you can't claim the Gift under chapter VI A as a deduction, it should be netted off as an exempt income under the head income from other source, which is given under section 56 (2) (vII) in income tax Act. there is a reference available regarding the relation to the person, amount of gift income etc.,

If you are giving a gift to any one in your personal capacity, You cannot claim deduction.

Following can be claimed as deductions:

Donations to various Central / State Govt relief funds, charitable institutions, etc can be claimed as deduction under sec 80G.

Expenditure incurred towards gifts for the purpose of business allowed as business expenses while calculating profit / loss.

What would be the documentary proof of the gift in case I am tranferring Rs.70000 from my bank account to my son's account

Since it is a small amount, an affidavit should suffice. 

you can also get an estamp paper... while transferring  an amount too..