Revanth (Job) (145 Points)
14 March 2011Hi
If anybody know about ths case, please help me.
"Father, Mother and son in a family, Here father wants to give a cash of Rs.2,00,000/- to son and Rs.5,00,000/- to Mother by way of gift deed. Both mother and son have other sources of income. "
What is the tax treatment, if any clubbing provision is applicable?
Thanks
Guptha
Pankaj Arora
(Learner)
(3134 Points)
Replied 14 March 2011
First of all this is big amount and father should give it by cheque only …
For son this gift will be exempt…
For mother it will not exempt…. Father can give this amount by loan only…
Devendra
(Chartered Accountant)
(4775 Points)
Replied 14 March 2011
If an individual makes a gift in cash or by cheque to his spouse and that money is utilized by the spouse for purchase of an asset . The income earned by the spouse from that asset will not be clubbed in the income of the individual.
Revanth
(Job)
(145 Points)
Replied 14 March 2011
Hi
thanks for very quick response,
Which section will refer these cases? will be very great helpful for me.
Revanth
(Job)
(145 Points)
Replied 14 March 2011
Is it necessary to have a gift deed, or mere intimation or declaration in the income tax return is enough,if in the son's gift case.
and also is there any other tax planning in case of mother.
Pankaj Arora
(Learner)
(3134 Points)
Replied 14 March 2011
Only declaration is enough… one more alternative is father can gift to sons 5Lac more and than if sons gift this amount to mother than it will exempt… for mother too.. others member views are most welcome..
Devendra
(Chartered Accountant)
(4775 Points)
Replied 14 March 2011
It is advisable to create a Gift Deed in such case.
Following is the gift deed format:-
Confirmation of Gift of money can be on a plain paper by way of a gift deed, there is no necessity of stamp paper.
Simple format of deed:
GIFT DEED
|
1.
|
DONOR
|
|
2.
|
DONEE
|
MODIFY THE FORMAT SUITABLY BY ADDING THE AMOUNT AND CHEQUE/ D D NOS'
Regards,
Devendra Kulkarni
CAclubindia
