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tax planning through gift

shail (accountant) (113 Points)

23 May 2009

i want to take gift from my father through cheque.what is the procedure for such gift? what documents are required or no documents required for gift from father to son?am i required to make affidavit for such gift of money through cheque?please describe any other document or procedure if required.

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8 Replies

Piyush Jain (CA) (283 Points)
Replied 23 May 2009

what planning u are seeking through this gift step. I mean this gift will reduce his capital and increase yours.

No document required. Gift could be given without any deed. But sorry it will not lead to any sought of planning.

Regards

Piyush

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shail (accountant) (113 Points)
Replied 24 May 2009

Originally posted by :Piyush Jain

what planning u are seeking through this gift step. I mean this gift will reduce his capital and increase yours.
No document required. Gift could be given without any deed. But sorry it will not lead to any sought of planning.
Regards
Piyush

dear piyush,

i want to tax planning as father is in highest tax slab and i am not.i think here no provision of clubbing apply as such.so any income based on such gift amount like interest will be taxable to me and not my father. is this possible?

one of my friend told me to make gift deed on 100 rs stamp paper and other friend told me not required to make any deed, same as yours.

i have a one question. gift is already made few months back.now what should i do?

-can i make gift deed on stamp paper now.please note that gift is already made few months back?is it possible?

VARUN (PCC STUDENT) (523 Points)
Replied 24 May 2009

there is no requirement for such stamp paper .... but if u want to be on a safer side .... thats not a bad idea ..... just do that for ur safety .....

Regards,

Varun Makhija

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Anuraag Sharma (Sr Executive Finance) (845 Points)
Replied 25 May 2009

gift taken by cheque in ur case will b exemt upto Rs. 50,000 from tax

if you want to take a higher amount of gift then it oul d taxable

in case of gift in kind from father it is exempt from tax...:)

and yes there is no requirement for any such deed or stamp paer...as gift tax is no more prevailing in India......now gifts are taxed acc. to the provisons of Income tax act, 1961and this act nowhere provides for any requiremnt of makin any gift deed on stamop paper...

regards,

Anuraag Sharma

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deepak K Gujrati (CA-practice) (966 Points)
Replied 25 May 2009

Gift by father to the daughter [major] will not taxable at any amount whether made in cash or in kind. Gift deed is made just for confirmation of the transaction. it can be made any time after the gift made. In case the case is selected for scrutiny documents like gift deed, copy of bank statement, source of deposits in father account, income tax acknowledgement of the donor, copy of Balance sheet etc to prove his credit worthiness and genuineness of the transactions.

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t.k.thanthoni (proprietor) (24 Points)
Replied 24 July 2009

I am putting up a question for discussin. A person created a Huf of his son by gifting moneys through his will. The money received by the HUF after the death of the testator would be treated as the income of the new HUF under Income Tax Act. Is true or false?

deepak K Gujrati (CA-practice) (966 Points)
Replied 26 July 2009

False. There is no question of any income.

t.k.thanthoni (proprietor) (24 Points)
Replied 26 July 2009

But a leading tax practitioner has written in a daily , that this gift is taxable as income under Income Tax Act in the hands of the receipient HUF as it is received by the HUF (not individual), though there is no Gift Tax on it.