Dr. Jones (Director) (253 Points)
02 February 2010Hi,
My wife recently received gift of Rs. 15000 (in cash) from her father.
To treat this amount as gift, do we need to have something in writing? I mean, does her father give her in writing that he is giving gift to her daughter?
I want to ensure that this amount is not treated as income but as a gift, so wanted to know if we need something in writing for this.
thanks!
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Dr. Jones,
Gifts received from Father is not taxable..I mean the Income Tax allows it not to be treated as Taxable Income..
As such it is not mandatory to have anything a documentary evidence of Gifts.
But u can go for a "Gift deed" on a stamp paper. This is the best evidence u can have.
C.Balaji
(Learner)
(1867 Points)
Replied 02 February 2010
Dr.Jones
agree with Mr.Amir
Gifts received from Father is not taxable...
As rightly said by Mr.Amir it is not mandatory to have documentary evidence of Gifts.
Gift deed is a good evidence....
C.Balaji
(Learner)
(1867 Points)
Replied 02 February 2010
The Explanation to Section 56(2)(vi) provides that the expression "relative" means:
Dr. Jones
(Director)
(253 Points)
Replied 02 February 2010
Thank You for your comments.
I understand that gift from father is not taxable. But as it is given in cash, there is no evidence of the source of money.
So gift deed seems to be right option..correct? Also, correct me if I am wrong: Gift deed should be on stamp paper only right? Is there any format for such deed which can be used?
Thanks!
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Dr. Jones,
Ya u r rite.......
When u will go to buy a "Stamp Paper", just ask them to type a "Gift deed" on it.......They generally do have the standard format with them.......
Deepak Kumar
(Chartered Accoountant)
(270 Points)
Replied 02 February 2010
Any individual of huf can received exempted gift from his relative withyout any limit. Now there is no need to print gift deed on stamp paper. You can print gift deed on a simple paper. i am attaching the format.
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Ajay,
U r rite that Gift deed on stamp paper is not mandatory, but then I mentioned it as the "BEST EVIDENCE" & not as the only evidence...........
Thanks for clarifying , I think it was not coming out of my post.
Deepak Kumar
(Chartered Accoountant)
(270 Points)
Replied 02 February 2010
Dear Amir
I Wanted To tell to only that if stamp paper is not used, still the deed will be valid. Are yaar Stamp Paper ka paisa bach jayega na
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Ajay,
Ya u r rite brother, I said it on my earlier post also that I agree with u.
CA Saurabh Shukla
(Accounts Executive)
(223 Points)
Replied 03 February 2010
instead of all this process i.e stamp paper, you can say to your inlaws that pls. make the payment through banking channel.
it is a solid evidence that your wife get this money from her father.
make sure show this income in return of your wife and claim exemption of it, so that capital build.
correct me if i am wrong........
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