A Query:
In case of Gift Received from relatives or Non-relatives, it should be reported in IT Return.
Suppose that return was selected for Scrutiny and AO raised question about receipt of Gifts.
Now how that assessee will prove the receipt of Gift. Should he produce Gift Deed??
Practically in many cases we don’t find Gift Deed.
Please kindly suggest the ideas in such situations.
It can be tracable if it is given through bank, otherwise u have to make a evidence that deposit the same in the name of the donor.
You can prove the same provided the payment has gone through your bank statement.
Make a Gift deed whether the amount is big or small, but if gifts are below Rs.5000/- you need not worry as they are not taxable.
Moreover if they are from Relatives it is not taxable.
Kindly segregate the Gifts and make Gift deeds
You can make Gift deeds on Plain Paper so need not worry about Stamp Paper too
Agree with all... better make gift deeds or if you could arrange other evidence in your support...
CAclubindia
