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How to Ensure your Gifts are exempted from Gift Tax in India?

Gift Tax in India

In India we express our love and affection through gifts. Brothers gift sisters on Raksha Bandhan. Parents gift their children on every occasion, especially during marriage. Grandchildren are the recipients of loads of gifts from grandparents. We often hear of cars being gifted and homes being given to family members.

But do these gifts turn taxable after a limit? Do your elders need to pay income tax on gifts before presenting them?

How much gift is tax free in india?

As per the Income Tax Act, 1961 if the value of gifts received is more than Rs. 50,000 a year, then such amount is taxed as income in the hands of the receiver. These gifts may be in any form – cash, jewellery, movable and immovable property, shares etc.

However, this rule is not applicable if your relatives present the gifts. Now just to escape gift tax in India you can’t call a person your relative saying he is the son of my uncle’s neighbour’s vendor’s sister! To avoid scenarios like these, the income tax rules specify relatives from whom tax free gifts can be received. These are:

  • Parents
  • Spouse
  • Your and your spouse’s brothers and sisters
  • Brothers and sisters of your parents
  • Your lineal descendants (including spouses)
  • Lineal descendants (including spouses) of your spouse

Also, the gifts can be exempt even if they aren’t received from these relatives, if they are received during your marriage. So, stop fretting about the Income Tax Department questioning you about the car that was gifted by a distant relative at your wedding. But ensure that the date mentioned on the gift deed is of your marriage day or at least close to that date.

Just like marriages, there is no tax implication of gifts received as a result of inheritance. If the gifts come to you by way of a will then you aren’t supposed to pay any tax on the amount. However, the income generated later say by way of rent on a house inherited by you would be taxable.

You need not include the amount you got from local authorities or educational institutions as gifts for your good deeds or on the basis of merit.

However, if the amount of gifts received on occasions other than the above and from a person who isn’t a relative as specified exceeds Rs. 50,000, then the entire amount would be added to your income. So, don’t make the mistake of adding just Rs. 10,000 to your income, if a friend gifts you Rs. 60,000 for helping his parents.

Gift tax rates

Gift Tax Act was introduced in 1958, amended in 1987 but discarded in 1998.

The cash or cheque amount, stamp duty value of property and estimated value of other assets will be chargeable as income.

You will have to report gift value under income from other sources.

This gift income will be taxed along with your total income under the tax slab rates applicable to you in that financial year.

Always get the documentation done when there is an exchange of big gifts and note the occasion on the document. It would be easier to convince an assessing officer at the time of tax scrutiny if the written proofs are ready.

Gift chart as per Income Tax rules

Here is nice chart in the form of an infographic which will help you easily understand taxability of gifts, exemptions and other rules. Please click on the below image to see the full infographic.

Gift Chart

Gift Deed format

When you give gift to someone, it is essential to back it up using gift deed. A gift deed is a legal document which is used to describe the transfer of gift from giver to receiver without any exchange of money.

A Gift Deed should include the following-

  1. Date and place where Gift Deed is made
  2. Details of the giver or donor (name, father’s name, date of birth, address)
  3. Details of the receiver or donee (name, father’s name, date of birth, address, relationship with donor)
  4. Relationship of receiver or donee with the giver or donor
  5. Details of the property that is being gifted
  6. Signatures of donor and donee
  7. Details of two witnesses in whose presence the deed was executed
  8. Signatures of the witnesses

 

Stamp duty on Gift Deed in blood relation

Stamp duty of recommended value has to be paid for registration of Gift Deed. The Stamp duty charges differ from state to state and also based on gender. Few states offer a concession in stamp duty if the property is gifted to family members.

Gift tax planning tips

Taxability of gifts to employees in India

Any gift received by an employee from his employer is a perquisite. Perquisites are nothing but a benefit that an employee receives from his employer other than salary or wages due to the office or position he holds as a result of his employment.

So during a Financial Year, aggregate value of all the gifts or vouchers received by the employee if found to be equal or less than Rs. 5,000 then it is exempt from tax.

How to gift money to wife to save tax?

If a husband gifts anything to his wife without adequate consideration then it is taxable in the hands of husband. The gift is clubbed with husband’s income. Similarly, any gift from wife to husband in the absence of adequate consideration is taxable in the hands of wife due to clubbing provisions.

Any income generated from such gift is also taxable in the hands of giver. For example, if you gift bank FD to your spouse then interest income generated above Rs. 10,000 is taxable in your hands.

Save tax by gifting money to parents?

Let’s suppose your parents are retired and they do not have any source of income or their income is below the taxability limit. In this case, you can gift them a good amount of cash which they can invest in high-return instruments such as senior citizen’s savings scheme.

Taxability of gifts from parent to child

As any income (other than the manual work done by him; or through any activity involving application of his skill, talent or specialized knowledge and experience derived by minor child) gets clubbed in the hands of the parent having higher taxable income, therefore gifting the amount to minor children may not help the tax situation.

Save tax by gifting to family members

If you have any close family member (covered relative) who fall in nil or lower tax bracket then you can save significant taxes by gifting/transferring your investment in their name. But do consider other factors such as succession issues before you transfer anything to your relative just for tax saving.

Gifting to daughter in-law

If you gift anything to your daughter-in-law without adequate consideration then any income derived by her out of the gifted amount/property will be clubbed in your hands.

Caution

Always get the documentation done when there is an exchange of big gifts and note the occasion on the document. It would be easier to convince an assessing officer at the time of tax scrutiny if the written proofs are ready.

Consult your chartered accountant on the tax liability due to investing money received as gifts. Rules related to clubbing of income would apply on certain instances thereby increasing the tax liability.

Niteesh Singh
Niteesh Singh
Niteesh works as a Tax Researcher at H&R Block India. He makes taxes easy to understand for people. He creates content for the website, marketing activities and social media. He carries experience in creating a wide variety of content like blogs, press releases, research papers, etc.

332 Comments

  1. S Ghosh says:

    In 2004 my mother sold a residential house in her name and purchased another residential flat in her name and in the name of her daughter in law and grandson. She paid capital gains tax in 2004. Will this be deemed as a gift to her d-in law and grandson? If so what is the liability and how it can be rectified.

    • HRBlockIndia HRBlockIndia says:

      Gift by mother in law to daughter in law is not taxable as it fits in the definition of relatives.

      • Naween Arya says:

        Can a father-in-law gift his house to his daughter-in-law without any gift tax implications. She would continue to live in the house and there is no income from the house. Your list above does not specify her as a eligible relative.

      • Tejas lakhani says:

        What is the definition of lineal descendant? Does my wife take a gift from her father’s real brother’ wife?

  2. rahul bhatta says:

    What if I receive 1 crore in cash as gift during my marriage??? What is the maximum time limit for me to put it in bank a/c???

    • HRBlockIndia HRBlockIndia says:

      Any gift received on the occasion of the marriage is tax exempt, be it from relative or non relative. But remember that you should be able to prove the genuineness of the gift (i.e. from whom you received the gift). Further the person from whom you received the gift should be able to explain the source for making such huge gift.
      Regarding the deposit of the cash in your bank account you can do it any moment as per your convenience. But remember that depositing cash of more than 10L in a saving account during any single financial year can raise a tax enquiry against you.

    • ajay says:

      above rs.50000 received would be declared as your income

  3. V Srikantan says:

    Does gifts received by me from my cousin ( her mother and my mother are own sisters) attract gift tax at my end?. I was told that they will come under my lineal ascendants or descendants and hence gift tax is not payable. Will you please clarify?

    V.Srikantan

    • HRBlockIndia HRBlockIndia says:

      Any gift received by you from your aunty (your mother’s sister) will be tax exempt in your hand. But any gift received by you from her children (i.e. you cousins) will be taxable in your hand as they will not be considered as your lineal ascendants or descendants.

  4. sarma says:

    Can i give money more than 50,000 to my own sister as gift who is house wife? Is there any upper limit for it like 10Lacs etc?. They are in financial crisis and hence the need.

  5. Kamlesh says:

    If my parents transfer money to my account to help me reduce my loan, will this be treated as income to me and will I be liable to pay taxes on this?

    • HRBlockIndia HRBlockIndia says:

      No, any amount given to you by your parents will be treated as a gift from your parents who are relatives according to the definition of relatives under the income tax act. Gifts from relatives are not taxable and hence this income will be tax free.

    • vidyadhar says:

      i want to give hand loam or gift to my daughter through son-in-law account is it taxable

  6. Priyanka says:

    If I own a property and I want to gift it to a cousin nephew of mine. Will I be liable to gift tax or will it show in his income and he will be liable for tax? Also is gift tax depends on the state and city in India? Or its same across ?

    • Priyanka says:

      Wanted to know more about reconveyance deed.. and if its possible in the above situation i had mentioned. what will be the clauses and liabilities involved with that deed ?

      • HRBlockIndia HRBlockIndia says:

        Gift received from brother or sister of parents is not taxable as they fall under the definition of relatives according to the act. However this is a cousin nephew and hence the gift will be taxable in his hands as income from other sources, if the value of property is more than Rs50,000 . This rule is applicable throughout India.

        Reconveyance deed is a deed executed to transfer the title back to the borrower from the lender once the loan is fully repaid by him.

  7. Sahi says:

    if my maternal uncle ( my mothers brother )gives me gift a Carore will I pay gift tax
    Can I invest it in buying house

  8. Manju M V says:

    Hi,
    My wife’s aunt(NRI, U.S.) will be depositing 10 lakh in my wife’s bank account and my wife is using that amount to purchase a flat. What would be the tax liabilities for my wife and the aunt?

    Thanks.

    • JK says:

      Why are they depositing in your spouse account, why not get the cheque from NRI account of your aunty. That will solve all the problems.

  9. P S BOSE says:

    MY OWN BROTHER IS GOING TO GIFT A RESIDENTIAL FLAT TO ME. IS THIS WILL ATTRACT GIFT TAX IN FUTURE?

  10. angel9405 says:

    my query is if mother gifts his son from her other source income like FD interest, whose age is about 23 years and he is working. will it be taxable? and who will b taxable?

    and if the lady gifts the same amount to his non working husband form her interest income who will be taxable?

  11. Manu says:

    If grandparents gift to their granddaughters, is that tax exempt? The list of relatives per the tax law seems to be suggest NO but that seems very strange. Please help clarify. Thanks

  12. Ashok says:

    My father in law expired in 1989 without a will. My wife signed No objection for transfer of property in the name of her only brother. She didn’t made any claim.Now as a settlement between them her brother and nephews intends to give Rs 10-15 lakh and some jewellery as my father in law wished at the time of his demise to . My wife are four sisters. My wife is house wife. what is her tax liability.

  13. Ajay kanoi says:

    I want to gift some property to my father’s brother or his son. Will any of us be liable to pay any tax.

    Should I show original acquired value in gift deed or current market value.

  14. Ram says:

    Hi,
    Is i need to pay the tax for the gift mobile which i got in an offer?
    In breef got mobile in an offer from samsung, it cost around 20k. For getting that gift they are asking to pay the gift tax for that. I have gone through some sites came to know like,the gift cost which is below 50k is not taxable. Is it true? Thanks.

  15. Ravi says:

    I purchased an apartment recently and got it registered in my name (and I already have an apartment in my name). Can I gift the apartment to my wife and let her file the rental income on her PAN? will there be any tax implication on me?

  16. Shashank says:

    1)Whether Surrender value of ULIP is taxable, if not is it necessary to declare in IT returns, how.
    2) Whether Gift received by son is to be shown in IT returns. If yes how .

    Thanking you in anticipation.
    Yours sincerely,

    Shashnak

  17. BEENA SHARMA says:

    I BEENA SHARMA FROM DELHI INDIA HAVE GIFTED A NEW CAR TO MY SON IN LAW FROM RAJASTHAN INDIA ON MARRIAGE OF MY DAUGHTER WITH HIM. COMPLETE DIRECT SINGLE PAYMENT TO CAR SHOWROOM OF Rs. 5 LAKHS FOR CAR MADE FROM MY SAVING BANK ACCOUNT. CAR REGISTRATION IS IN THE NAME OF MY SON IN LAW.
    IS IT TAXABLE IN THE END OF RECEIVER OR NOT…?
    PLEASE PROVIDE ME CAR GIFT LETTER FORMAT AND SEND TO MY E-MAIL ID.
    THANKS

  18. Prakash V says:

    I want to gift Rs.20 lakhs to my wife which will be in the form of FD. Will there be any gift tax? Will the income arising from the FD be clubbed to my income? She does not have any other income.

    • HRBlockIndia HRBlockIndia says:

      FD gifted to wife is not taxable in her hands. This interest income will not be added to your income but will be a part of your wife’s income. This income will be taxed in the hands of your wife and TDS will be deducted by banks from this interest.

  19. Niketan says:

    Can I gift money to my mother for her future expenses? Will the money transferred to her acccount be taxble?

  20. Malvika says:

    My dad’s friend who has many properties wants to gift me one of the property out of love and affection on the occasion of my marriage. I have no blood relations with the friend of dad.
    Since it is gift on the occasion of marriage will it be Tax free?

  21. santanu nundy says:

    i am a bachelor.my brothet may lose his flat due to his own foolishness and to secure the family…..i want to gift my flat in my sister in laws name so that my brother wont be able to play around with my flat.
    THANK YOU
    S.NUNDY

  22. Murlidhar Bulani says:

    Can a real brother, jointly held 50% property by me and my mother 50% as second owner gift each of our share of property “to my younger brother” since the mother wants her share to be gifted to my younger brother and so do I want. So that he becomes the sole owner of the property now itself instead of a will in his favour. Whether any tax liability is involved in this case on any of us. The property was bought about eight years back in Maharashtra and self occupied by my same younger brother and parents.
    Please guide in the matter.

  23. Krishna says:

    I am an NRI and own a house in India (no mortgage). I want to gift this property to my senior citizen parents on their anniversary. Understand this transaction is not taxable.
    Questions:
    1. Since they live in a different city the property which I gift potentially will be rented. Will the rental income be taxable for my parents? They are both retired long ago and they do not have any other income and hence do not file returns.
    2. If in future they decide to sell the gifted property what tax implications they will have?

    Thanks
    Krishna

    • HRBlockIndia HRBlockIndia says:

      The gift transaction will not be taxable.

      However the rental income that they receive will be taxable in their hands if it exceeds Rs250,000 per year.

      If they wish to sell this property in future then they will have capital gains on sale of property and these will be taxable in their hands. However they will get the benefit of indexation when they calculate the amount of capital gains. If the property is held for more than 36 months (in total by you and your parents) then this will be a long term capital asset and the gains will be long term capital gains. These gains will be taxed @20% if indexation is used and @10% if indexation is not used. However tax on capital gains will be exempted if the sale proceeds are invested in some other capital asset as specified in the IT Act.

      • Mohinder Singh says:

        Rent is income earned in India and it will be income of the son not the parents for tax purposes.However any interest earned out of Rent amount will be income of parents.
        Capital gains also will be income of son for the purpose of tax.

  24. Shriram says:

    Hi Sir

    Good day to you. Need your help on below queries.

    I am a salaried person. my wife is also working and earning 2,00,000 per year. I am paying rent to my mother to save HRA and it is the only source of income of my mother.

    Queries are
    1.) If my mother gives a gift of 3,00,000 to my wife (from the money which I paid to my mother as a rent), will it be taxable to me or my wife?
    2.) If my wife deposits 1,50,000 in her PPF account (wife PPF a/c) , will it be taxable to me or my wife?
    3.) interest on PPF account, will it be taxable to me or my wife?
    4.) If my wife deposits another 1,50,000 Sukanya Samriddhi Yojana for our daughter, will it be taxable to me or my wife?
    5.) interest on Sukanya Samriddhi Yojana will it be taxable to me or my wife?

    Request you please confirm so that I can plan my savings.

    Regards
    Shriram

    • HRBlockIndia HRBlockIndia says:

      Hello Shriram,

      1. Any gift from mother to a daughter in law is tax free, hence this gift of Rs 300,000 is tax free in the hands of your wife.
      2. The amount deposited in the PPF account by your wife is deductible from her taxable income. Although if she earns Rs. 200,000 then her income is not taxable. You need to earn a minimum of Rs 250,000 in order for it to be taxable. Hence this amount is not taxable.
      3. Interest on PPF is reinvested in the account and hence not chargeable to tax.
      4. Rs150,000 deposited in the Sukanya Samridhhi Account is also not chargeable to tax. This amount is also available as a deduction from taxable income.
      5. Interest on Sukanya Samridhhi Yojana is also reinvested and not taxable.

      I hope this helps you in your tax planning and savings.

  25. Moiz Nadir says:

    Sir my need is 450000/- for our flat registry, for this my parents in Law is giving 200000/- to her daughter as a gift. Sir what rules say abot tax liability

  26. sundar says:

    Dear sir,
    My mother is going to sell ancestral property of my grandfathers by will, by converting the land into sites for an consideration of around 1 crore. please let me know

    1. Whats the capital gain tax and exemptions for it.
    2. As a son, if i construct house on land in my name through that money, is it exempted.
    3. On purchase of land with that money is it exempted.
    4. other ways of exemption.

    Thanks n regards
    sundar

  27. raj says:

    If I receive a gift abroad (by draft) from a relative in India, what are the tax implications for that relative in India. Also what are the limits for giving a gift to a relative living abroad?

    Thanks

    • HRBlockIndia HRBlockIndia says:

      Gifts are taxed in the hands of the receiver. The relative who gives the gift does not bear the brunt of taxes.

    • HRBlockIndia HRBlockIndia says:

      Gifts are taxable in the hands of the receiver in India and not the giver. Hence there will be no taxation on giver of gifts in India even if the receiver is out of India.

      Gifts received in India are taxable if they exceed Rs.50,000 in a single year. However if the gifts are given by relatives then these are tax free. Relatives include spouse, brother and sister of spouse, any lineal ascendants or descendants of spouse and spouses of all these relatives.

  28. Tarun says:

    If a receive a gift of 600000 from my grandfather(mothers father)
    So is it taxable or not ?

  29. Jaya says:

    My Father is a NRI , He has transferred 10 Lakh in my Account from His account , will there be any liability of tax for me. And how will I show this amount in my return.

  30. Ram says:

    Dear Sir,
    1. Can a relative (relative as defined in the IT Act) gift me more than Rs 20,000/- in cash in a particular year or does it necessarily have to be done using a bank instrument or NEFT etc.
    2. If the answer to 1. above is no, can these be multiple transactions in year totalling more than Rs 20,000/- but each individual transaction being less then Rs 20,000/-

    Thanks
    Ram

  31. Vikram Bhatt says:

    My sister is having NRE account. she is US citizen, she has FDs of amount apprx. 7 lacs. now she wants to gift me. so is there any tax liability for she gifting me. i know as per definitions she is relative, but she is NRI.

    • HRBlockIndia HRBlockIndia says:

      There is not gift if a relative gifts you even if she is an NRI. Hence there is no taxability for you. However the gift tax rules in US are different.

      “As a US citizen, your sister can gift $14,000 to any person during the year without any gift tax implications. If she gifts more than $14,000, she will need to file a gift tax form to claim a gift tax exclusion.”

  32. HARESH says:

    My daughter & Son in law has purchased flat when they are Indian citizen. Right now they are Canadian citizen. Recently they sold flat through Power of Attorney gave to me. Money deposited in their account.
    Now they want to purchase new property in my name against money received by sell of flat.
    1.Money received by me is Taxable under Gift tax?
    2.Can I purchase property in my name?
    3. I have to show received money under ‘Income on other source’ in my return?
    4. I have show purchase of property in IT return?
    5. Can they purchase new property against sell of old property in their names itself, without paying any extra taxes?
    Thanks.

  33. ashish says:

    How much money daughter can gift to her parents? is there any law for this?

  34. Shiv says:

    Nice Article!!

    I have one quick question. Currently I am in US and have one property in India which i am not able to manage any more so was planning to gift it to my brother. I am not drawing any India salary and current property is on rent so filing rental income as the only income source which turns out to be zero tax filing. When I gift it to my brother will there be any tax consequences to me or my brother. My brother is employed in India and files income tax returns regularly. And do I need to do any documentation for this gift to my brother.

  35. HARESH says:

    My daughter is NRI/Canadian. She has sold her property in India and money deposited in their Indian Bank A/c. She wants to give Rs. 30 lakhs to me as Gift to enable me to complete/purchase my Bungalow.
    -Can she give money to father and required to prepare Gift Deed, duly notarized in Canada and register same in India?
    -I have to pay any tax for this money/gift.
    -Whether I have to show this gift in my IT Return without paying any tax?
    -My daughter has to show profit amount i.e. (Capital Gain = Sale Price MINUS Indexed Cost of Acquisition, Say Rs. 10 Lakhs). In IT Return under Income from other source 10 L minus 2.5 L (nil tax) and pay 20% on 7.5L i.e. Rs. 1.50L.
    Thanks.

  36. VINEET MALHOTRA says:

    I received a gift of Rs 10,00,000/= from my parental uncle ( my Fathers Brother) is this amount taxable and how much tax t will have to pay. If it is not taxable then how will i shoe it in my it return

  37. Ss says:

    If an uncle, a resident of India, is the beneficiary of a family trust fund set up by his brothers son, ie his nephew, in the U.S., what are the tax implications here for him, the beneficiary? I believe nephew to uncle does not constitute being a relative?

  38. S Ghosh says:

    One of my facebook friends send me i phone 6 and a mac book as a gift from UK to INDIA…Is there any tax which is applicable on this gift ??? Help me out !!!

  39. R. Singh says:

    I am housewife and having no out side income. My husband is a regular income tax payer & filing return. out of his saving & amount received from voluntary retirement he gave me on various occasion total 11 lacs for self use and children education expense. I opened bank account & made a fixed deposit. for 10 lacs. as the fixed deposit transaction was 10 lacs in FY 12-13. I think from bank IT dept has collected info & sent a notice for IT Return. is it taxable? my husband has given me after tax saving. it is like a gift. what to reply to IT dept? is it necessary to take from husband in writing as a gift on plain paper or something else. pl guide me so that I can give proper reply.

  40. Anurag says:

    Is donor of gift is also required to show the gifted amount in his income tax return? My father has gifted 1 lakh to my wife. Is he required to declair the same in his ITR, if yes then how?

  41. rakesh says:

    Sir I am a govt servrnt if I recd cash gift from father or rs. 500000 and deposit it bank for FD,whether it is taxable or not,or documentation is necessary of gift

  42. Dr Tariq says:

    Is it mandatory to disclose the gifts received from close relatives while filing income tax returns?

  43. Mohd says:

    My parents gifted me a huge amount (30 lakhs) . Is it mandatory to show gift received from parents in ITR

  44. anuj says:

    my father giving 1100000 in cash is taxable?

  45. Tarun Jain says:

    kindly provide me the tax implication of gift in relation of my mother and my wife.
    I mean if my mother gift to her daughter in law
    thanks

  46. ravi says:

    my father wants to transfer his shares worth 10lk+ from his broking ac to my broking ac as gift , will there be any tax implications in this transaction . i can make a gift deed on stamp paper for the same for future reference . pls advise

  47. Mahesh says:

    What I understand from the article is, If i gift money to my wife’s brother it is not taxable, and income earned on gift is not taxable to me.

    if my wife’s brother gifts back the money to my wife, this is again non taxable to my wife as well as her brother. I understand only the income generated from gifted money is only taxable to my wife. (not to her brother or me)

    is this legally allowed or will it come under any scrutiny by IT?

  48. Amandeep Singh says:

    I do forex and commodity trading on different trade exchanges globally. I use neteller for transfer of money to my trader account and receive the profits in same account. What is tax liability on all my profits?

  49. Manoj says:

    My mother holds a property in New Delhi, and wishes to gift it to me (her son). From what I read, there is no Gift tax. Correct? The Gift deed needs to be registered? Where is this normally registered? What are the approximate cost of such registration. (Cost of property is approx Rs 1 crore)

  50. Mohan says:

    Dear Sir,

    Your explanation on Gift tax was very helpful. I would like to mention the cash gift received from my father. pl tell me which ITR form should be used. I do have Interest from FD’s and short term Capital Gain . (which section in the form to be filled)

  51. Mayur Shah says:

    Can my real NRI sister gift me the flat ? is it taxable for either side ? can i sale that flat and invest that money on my own ? plz guide me, with options. Thanks.

  52. Ami says:

    Dear Sir,

    I have been gifting money via bank transfers to my mother who is a senior citizen for her reitrement corpus. She currently invests in FD.

    1. Is the interest earned on FD taxable in my hands or my mothers?
    2. Is a gift deed on stamp paper required for every transfer ? is any legal proof required?
    3. In future, if there is a need like house purhcase, can my mother gift back the money to me ? or will it make the original gift null and void?

    thanks…

  53. Krushik says:

    If I gift to my brother’s daughter on casual day (not on special occasion) of Rs.75000 who is under age of 5 then will it be taxable ?

  54. Trapti Batra says:

    I purchased a car costing Rs.4 lacs in Nov 2012 in my name. Now the present value of car is Rs. 3lacs. I want to gift the same to my father and transfer its title in my father’s name. Please advise whether there will be any tax liability in the hands of my father

    Thank you

  55. Nitin says:

    Dear Sir,

    I had given gift of 15 laces money to my mother & my father. But at that time I didn’t know about gift deed.This matter was five year back.

    Is a gift deed on stamp paper required ? Can It be done today?

    Regards,

  56. Kiran says:

    Sir, How taxation system works for the person A if Person A is giving a gift to Person B. Lets say Person A is a salaried employee and given a gift of 50000 from his income of 900000. Now person A computes tax on salary of 850000 or 900000? How does it works.
    Consider Person B is a sister of Person A.

    Regards

  57. Chandar says:

    I want to gift Rs.10 lakhs by a duly executed gift deed to my wife from my retirement benefits which will be in the form of FD. Will the interest of FD accrue to my wife in her account arising from the FD be clubbed to my income? She does not have any other income.

  58. Chandar says:

    Sir, I want to gift Rs.10 lakhs by a duly executed gift deed to my wife from my retirement benefits which will be in the form of FD. Will the interest of FD accrue to my wife in her account arising from the FD be clubbed to my income?

  59. Ram says:

    Sir, Can I receive from my NRI brother money as gift? If so how to do it.

  60. Hitesh Bhasin says:

    If I received a money from my grandmother. Is it taxable r not ?

  61. PS Sarma says:

    I am the first owner of an apartment in Hyderabad having purchased it in 1993. Subsequently I have gifted the same to my mother in 1995. She proposes to sell the same now. During the time of property registration, the buyer plans to pay in the form of Demand Draft in her name. In such case, what are the income tax implications (like capital gains) for (1) myself and (2).

  62. Preeti Mirza says:

    Dear Sir,
    I live in Australia and I am holding Overseas Citizenship of India as well.
    My Uncle (mother’s brother) who lives in India and who doesn’t have any children , wants to gift his flat worth of Rs.80,00,000 to me. Do I have to pay tax on it? If so, how much tax I have to pay?
    Kindly advise.
    Thanks & Regards,
    Preeti

  63. SK Kulkarni says:

    I had 2 BHK flat. IT was in joint name (self and my wife). Can I gift 50% of profit to my wife which she can invest further in mutual fund etc. Will that be taxable for me or my wife

  64. Madhavan Pillai says:

    Dear Sir,

    My daughter who is an NRI, transferred a sum of approx. Rs 1.5cr as part payment against the money spent by me on her Medical education in Australia. Does this amount have to be included in my total income and taxable? Can this be taken as gift from a blood relative?

    Please clarify

    regards

  65. Phogat says:

    Hi,
    First thanks for sharing such a good information. I have a question:
    If mother in law gives say 20 lakks as a gift to daughter in law, then :
    1. Whether this gift amount is taxable?
    2. If Daughter in law invest this amount somewhere, and earned an income of 30000, will the clubbing rule apllies here? 30000 will be counted on whose part, Daughter in law or mother in law.

    Thanks

  66. PK Bhardwaj says:

    My son is an NRI in USA. He wants to gift some stocks in US$ to me & my wife in India. Is this gift tax free ? When we sell these stocks after some time in US Market, will the appreciation gained also tax free ? Kindly clarify.

  67. Amal says:

    I have given 30,000 to three friends a for their fee at college. And after one month they three paid me back that 3×30000.
    So is I needed to give tax for it?

  68. Akash Roy says:

    Hi
    I have a friend in China who wants to give me a phone on my birthday.
    In Indian Currency its price is almost Rs. 10,000.00 .
    So if I get that. Will I have some trouble getting it ?

  69. b.kirubakar says:

    sir, my mother in law will transfer her immovable [land] property to her son by executing a gift deed after that he will sold to some one. whether it is taxable or not and later when it is amount to taxable. please clarify to me

  70. hardik kapadia says:

    My father sold his old property last year & to avoid capital gain tax he bought new property
    now this new property (still not a year passed ) but he wants to transfer on his wife (my mother)
    (also heard that , we cant sell in 3 years of buying, but here in our case we are just gifting to wife)
    so
    – firstly is it possible to transfer or gift to wife in same year of buying property
    – if no then why & what is solution
    – If yes, then any tax applied to gift a wife & or after words any capital gain tax rise.

    PLS help to resolve the issue
    thanks
    Hardik

  71. ABhishek says:

    I am a govt servant, i wnat to gift a flat at the time of registry to my elder brother.
    how can i do so that i will not be owner any more. And there is no difficulty in may office . As i am claiming Income tax rebate from the interest paid to bank in house loan.

  72. NAMDEV GAWDE says:

    Pl show me the calculation of Gift tax

  73. rohit trikha says:

    My Mother has received total amount of 40 lacs from my bother as gift in different intervals. She fixed the amount in one of the bank. Can this be considered as gift?

  74. uthaiah says:

    my uncle (fathers brother)s son wants to gift me a commercial building and coffee estate..is this taxable under Income act

  75. yogi says:

    you have give few examples of relative but this is not all inclusive – am i correct ?
    as i see gift from mother in law to daughter in law, from me to my brother’s wife, and so on

    can you please clarify gift from my wife to my brothers wife ( derani / jethani ) is tax free
    such as residential flat or cash by way of bank transfer

    for income tax it may be tax free but what about stamp duty on real estate for such gifting ? is the law same for stamp duty act under stamp duty act of maharashtra ??

  76. SUBHASH BHATTAD says:

    Good Clarification on Gift TAX.
    This is about tax planning.
    ‘X’ a Hindu boy getting married to ‘Y’. Gifts, Money envelopes received in the marriage from family friends, business associates.
    A. In case of ‘A’ or ‘Y’ , in individual capacity it will be exempt as ”gifts received on the occasion of marriage”
    B. Alternatively can the amount be used as corpus to form a HUF of ‘X’ where in X and Y are coparceners ???. Amount is received in marriage so would it be taxable in the hands of so formed HUF ??

  77. Joshi Kumar says:

    Hey There,
    Recently i won a car as price in one of the contests conducted by a big retailer in the city.I have not claimed the prize yet, they are planning to conduct a function maybe next month or so.I don’t plan to keep the car neither exchange for cash is an option.Is it taxable if i sell the call? If so how is it calculated and how much should i expect to pay as tax?The car might be valued around 8 lakhs.Please do respond.Thanks.

  78. s biswas says:

    My father want to buy a flat in my name is it taxable to me ?

  79. ashish says:

    we are facing some issues in selling the property as its in commercial of another state and the market price is lesser than the govt price. so what can we do in this case…?

  80. Manoj says:

    My parents want to gift my wife Rs.2 Lacs for purchase of car. My wife earns a taxable income. Will my parents gift money be considered as an add on income of my wife and is this money too taxable ?

  81. Nitesh says:

    How to show amount of Rs 45,000/- in my income tax return, which I gave to my parents as a gift on their marriage anniversary? Should I need to create some kind of document for this and attached as a proof with ITR?

  82. Vishal Jadhav says:

    If i gifted some amount of money to my wife it is above 50 k i can take tax benefit if yes how can i take the benefit

  83. Mattew says:

    I have some amount pending to close my Home loan (INR 4L), will it be considered as a gift if my Dad was to directly pay the bank to close the loan, versus me taking the money from him and pay the bank. My dad is not looking at taking this money back from me.

  84. Arya says:

    Sir, Along with my elder brother and elder sister, I own a house. All three of us are co-owner of this property. Now I want to relinquish my portion to my sister who will pay me 50 lakh, in installments of 5 lakhs per year for 10 years. Do I need to pay tax for this amount of 5 lakhs every year? Can I show this amount as a gift from my sister? Please advise. Thanks

  85. murali says:

    Can gift of immovable b made by simple letter or registered deed required ?

  86. SURESH says:

    can i take gift money from my cousin brother (my mothers sister’s son) who is an NRI without any tax liability ? if can,is there any limit .
    can I gift my property to him without any stamp duty and is this free from tax liability .

  87. Anup Bera says:

    Dear Sir
    If i received Rs 400000 from my wife as gift , Is it taxable?
    If yes then who will have to pay tax?

  88. SRINI says:

    dear sir,
    If I gift a property(Flat/house) for which i am paying home loan to my sister and by asking her to pay the balance home loan EMIs.
    1. does she get the tax benefit of gift tax
    2. does she get the tax benefit of income tax for home loan?
    She has other income also

  89. Hemanth says:

    Hi,

    I repaid my sisters’ educational loan of 15 Lakh over a period of three months this year. Can this be considered as gift and be exempted from income tax ?

    Thanks

  90. Rajan says:

    Can i receive cash of rs. 30 lakh from my mother without paying any Tax. If i can then is there any limit.

  91. Rahul verma says:

    Hi
    Can I get a gift of rupees 20 lacs on marriage from faather in laws . Ana is it tax free?

  92. Rajesh says:

    What are the prevailing rates?

  93. R D Saini says:

    Please let me know
    if a son is an NRI and send money from his foreign A/c to the SB A/c of his father leaving in india as gift for his maintenance charges in old age, would that money attract any tax in india or not.
    RD Saini

  94. manoj says:

    dear sir,

    if I will give some amount to my father as gift what is maximum amount and is that amount is taxable to me or not .
    regards
    Manoj

  95. rohit says:

    Hi

    I pay 40000 to my kother in cash every month from my salary which she invests in RD in bank. The income received from interest in these RDs is less than 3lakhs, so she doesnt file an IT return. Once this RD matures, this money is used to pay loan gor my home. Is this all fine or there is some tax liability on me.

    Thanks

  96. johnmaliekal says:

    my son living in england with his wife and children has send me 10,000 pounds. I wanted to deposit this money to his minor childrens name. Can they withdraw this amount after becoming majors. please sugest if any implication involved.
    JOHN

    • HRBlockIndia HRBlockIndia says:

      Dear John,
      Yes they can withdraw the same subject to the rules and norms existing at the time of withdrawal. You can get more detailed suggestion from the bank where you would be investing.

  97. Samel says:

    I am an NRI living in UAE, i have a agri property in bangalore yet to be converted into residential one (which is under process). Planning to buy a agricultural property in tamilnadu but i am not able to do so as NRI’s are not allowed to buy agri properties in India. Approx value of the deal shall be 1.5cr.
    The options before me are
    a. to gift the land in bangalore to my mom and then she buys the agri land in TN in her name.
    b. to gift the money that i get by selling the land to my mom and she buys the agri land in TN in her name.
    1. Will i be exempted from capital gains if i follow option b? if not what is the percentage that i will have to pay?
    2. Is there a better way to do this deal?
    3. Will I / my mom be subjected to any other tax?
    Thanks,
    Samel.

  98. Shailaja says:

    1. Can i give a gift of 2 lakhs to my cousin sister -( she is my mother’s sister’s daughter). will this be taxable -fyi – she is currently a home maker and therefore not under the tax bracket.

    2. Can my mother give a gift to her niece – will this be taxable?

    Please clarify so we do it right.

    • HRBlockIndia HRBlockIndia says:

      1) You can give the gift to your relatives. The same is Not taxable. Relative for this purpose means in case of an Individual is:
      a) Spouse of the individual;
      b) Brother or sister of the individual;
      c) Brother or sister of the spouse of the individual;
      d) Brother or sister of either of the parents of the individual;
      e) Any lineal ascendant or descendent of the individual;
      f) Any lineal ascendant or descendent of the spouse of the individual;
      g) Spouse of the persons referred to in (b) to (f). But the mother’s sister’s daughter is not covered in the definition for the relative.
      2) The answer to this is covered in the above answer.

  99. Nisy says:

    I want to transfer my house to my father on which i m still paying monthly installments and would continue to pay even after gifting it to him. Is that possible???

  100. BJ says:

    How do you file for exemption from the money you get as a part of inheritance. (it is not FD/property but as a nomination of a bank FDs).

    It would really help if you can list out step by step under which section do I claim an exemption and what documents will be required to attach.

    BJ

    • HRBlockIndia HRBlockIndia says:

      Dear BJ,
      You do not need to worry as the money you get as a part of inheritance is exempt from tax. If the account is closed and payment made then it is not taxable in hands of successor. But if FD is continued then interest from FD from the date of death to maturity will be added to the income of the successor. Tax on interest before the date of maturity would be added to liability of the deceased.

  101. Sanjeev Panwar says:

    Dear Sir,
    I have sold property which i purchased in 2008. Now i want reinvest this fund in to property again on my monther name. please confirm, would i need to pay capital gain on sold property if i am gifted this fund to my monther and reinvesting again in property on my month name.
    Also please advise if money gifted to mother of sold property will be taxed

    Sanjeev

  102. K.Subramanian says:

    Dear Sir,
    Myself and my Father are going to receive amount separately from my younger Brother towards family settlement, as being the compromise one, thorough court order. I would request you to kindly clarify the following:
    1. Whether the above amount will be exempted from Income Tax i.e capital gains tax.
    2. Whether the amount so received by my Father from my Brother can be transferred to my son or Daughter. Kindly clarify whether such transfer of amount is exempted from Gift Tax and what is limit or maximum amount that can be transferred immediately on receipt, since he is 96 years old.
    3. Whether the amount so received by me from my Brother can be transferred to my wife, two sons and one Daughter. Kindly clarify whether such transfer of amount is exempted from Gift Tax and what is the limit or maximum amount that can be transferred immediately on receipt..
    I would be much obliged if you can provide clarification on the above points.
    With regards,
    K.Subramanian

  103. Anusha says:

    HI,

    1. My mother who is a housewife has saved money ( no income, saving from grocery etc.) and wants to gift me which is around 3 lakhs.. Is it tax free ?
    2. She is insisting i invest the amount in FD for which i will be taxed at interest, instead i want her to keep the amount in her bank account and make me nominee for new FD in her name (so the interest will be tax free because of low tax limit of hers) ?

    Is my idea correct ? and does she need PAN card for this ?

    regards,
    anusha

  104. Lalim says:

    My brother who is a foreign citizen wants to gift cash to me and my family. Will there be any tax liability for me or my family (spouse & minor child)? Are there any limits defined in the IT rules about the monetary limits to gift. What are the possible options (including buying property) in investing in such gifts without any tax liabilities.

    Also if he gifts to his parents then are there any tax liabilities for my parents?

  105. Suyash patil says:

    My cousin received a lineal property through will of my grandmother now if he transfers the property to me as a gift will I be liable to pay tax

    • HRBlockIndia HRBlockIndia says:

      Yes, if you receive a gift from cousin, it will be taxable because the ‘gift received from cousin’ does not come under the definition of ‘gift received from relative’. So it will be taxable.

  106. R K Agrawal says:

    What are the legal and tax implications of a friend( USA citizen) giving away gift of US Dollar 10000/- per calendar year to my daughter (Indian citizen) studying in USA.

  107. thirukumar says:

    My mother in law is a widow and i have given lumsum of money and she deposited in FD in bank.

    Pls confirm whether i have to pay gift tax

  108. T Singh says:

    Hello Sir,

    I am planning to buy a house for which my parents are gifting me a sum of Rs. 5 lakhs each. While I understand that this is non-taxable, just had two queries:

    1. Do I need to show this amount in my Income tax returns (I am a salaried individual)?
    2. Is any documentation required (They will be giving me the amount by cheque)?

    Can you please help with the above…?

    Thanks,
    Taranvir

  109. Rahul says:

    My dad bought flat in last year and now he wants to transfer that flat to my name. My question is, does this transaction is taxable?
    Thanks in advance

  110. Raghuveer says:

    My father purchase a land in name of my wife. Who has no source of income. The payment is done by my fathter. For this is my wife has to be tax???

  111. S.Mohan says:

    sir,
    Can I make gift deed after making the gift?Is yes,is there any time limit within which I have to make.I am a NRI
    So i want to know the procedure.Please guide me.

  112. S.Mohan says:

    Thank you for not publishing my email addresss and waiting for reply

  113. arvind says:

    hi

    does the receiver of gift have to file income tax return and provide documents/proofs (if he/she receives monetary gift from a relative.) he/she doesnt have any source of income .?

    thanx

  114. Vinay says:

    To reduce my tax liability can I safely transfer money in my parents saving account?
    Is there any amount limit in this scenario?
    For my parents, will the whole amount be treated as income or just the interest earned from it?

  115. My wife want to gift her immovable property to my sister .will my sister have to pay gift tax.?

  116. raj says:

    Hi…really good and detailed article..just have one question : I have transferred/gifted nearly 20 lacs to my mother in this past year…from this article it is clear that she needn’t pay any tax on this…however, what is not clear is : if she should disclose anywhere about this, like in her IT returns ? If yes, then in what section of the IT returns and in which form…my mom is a housewife and her only source of income is interest earned on FDs (less than 2 lacs per year)…

  117. Mukul Soni says:

    Hi
    My father’s PPF has matured and has been credited into his own resident account. He wishes to gift this full amount to me immediately, not by way of inheritance. I am an NRI and maintain an NRE account in India. My wife has a NRO account. Can we both , collectively or individually, receive this as gift from my father without incurring gift tax as by way of definition of relative we would both qualify.

    Question is 1). Will my wife and/or I be taxed in India ( our earnings are nil and do not file Indian tax returns). 2.) Can we repatriate this amount to ourselves out of India and what is the annual limit on the amount that can be repatriated from an NRO account, if at all.

    Thanks for your clarification.

    Mukul

  118. ravi says:

    i want gift my daughter some liste d company share .is it tax expmted on sale valued 5lac

  119. Can a person make gift to his “to be” son in law 6 months prior to marriage.
    Suppose he pays in July and Marriage will be in Dec of the same year, what will be the consequences.

    With Regards
    Deepankar Chaudhary

    • HRBlockIndia HRBlockIndia says:

      Dear Deepankar,
      According to Income Tax Act, he does not fall in the category of your relative yet. So, gift received by him from you in cash or kind with value greater than Rs. 50,000 will be taxable for him.

  120. Alok Srivastava says:

    Good Morning sir !
    1. My mother (widow- Age 75 years) is a family pension holder after the death of my father.
    2. Income from Annual Pension is 2.16 Lakhs
    3.A land was acquired by her during 1995.
    4. She sold the agricultural land in 2014 for Rs. 21.5 Lakhs for which she received the payments in installments.
    5. She received 7.5 Lakhs in 2014-15.
    6. balance amount of Rs.14 Lakhs was received in 2015-16.
    7. She gave me gift of 12.73 Lakhs in the year 2015-16 towards purchase of flat by me. The amount was directly credited to the builders account.
    Now
    8. I understand that I need not pay any taxes being a gift from her
    Q1. Do she need to file income tax for the AY 2015-16 ?
    Q2. If so then in Which ITR ?
    Q2. How could she obtain exemption on tax ?

    – regards

  121. sunita says:

    I have an under construction property, can I gift it to my daughter who is major and student with no earning? Would there be any tax liability on me or my daughter?

    • sunita says:

      Sir plz reply

    • sunita says:

      Sir kindly reply

      • HRBlockIndia HRBlockIndia says:

        Dear Sunita,
        For sure you can gift the property to your daughter and no one can stop you from doing so. Any gift from father/mother to daughter is exempt and there will be no tax implication in the hands of your daughter for the gift received but if she derives any income (exceeding the exemption limits) in future from the said property she will have to pay the respective taxes if any applicable in her case.
        You will not be liable to pay any tax as gift tax was abolished long back. But in case you have already registered the agreement of sale in your name then depending on the state revenue laws you may be liable to pay some stamp duty and registration charges for the transfer of the property in your daughter’s name.

  122. Preetam says:

    Bought flat worth 7.5 lakhs in 2004 (in my name)but forgot to disclose it in my returns. Took 20 lakh housing loan in 2007 and constructed a house on 288 sq yard open land(land in my wife’s name, loan by both of us me as co applicant). Sold my first flat in 2011 April( registration in April 2011 but payment for flat received part by part from 2008 June as purchaser was an nri and registration done after he came to India in 2011 April). I used the sale proceeds to prepay our housing loan to extent of 9 lakhs and completed the construction work of our new house in 2008.Now what is my tax liability? Is my flat sale exempt under 54F?

  123. Les says:

    I am an NRI for the past 15 yrs. I used to gift my earning to my parents and in laws to invest and for tax saving purpose. This money would be in Bank and company FDs. I now intend to invest in equity. My Wife will open a Demat acct and Trade acct. Can my parents and in laws can gift my earnings (given as gifts) to my wife for further equity investing. I know that I can gift my parents and in laws & only loan to my wife. Will this round about mean fraud because I am in effect doing the prohibited. What is the best way to do it to keep clear of the IT glare in this case.

  124. N says:

    I give gift to my housewife widow senior citizen mother every month since last 4 years since I lost my father. It is not for an ocassion but out o fmy love and for her security I gift her. However I do not have a real documentation or notarized document.
    I was under the impression this is tax free but now I am worried since the ITO can always tax my mother as credits received form me liable to tax.

    Maybe I have mis-interpreted but I am worried since the money gifted by me is out of my income which is already tax and paid via netbanking channels.

    I request your inputs to clarify my doubt of if I need to create any documentation retrospectively just for satisfaction of the ITO.
    And how can I really follow the statute that I have made a gift to my mother.
    Thank you.

  125. KAG says:

    If I gift 2L Rs to My mother and sister, as per the Income tax rules these Gift amount is completely exempted. Also when I am reading the rules and remarks on the site, it is understood that the income from the investment of this amount by them (in 5 yrs FD or other FD), would be added to my income.
    PL CONFIRM IF IT IS CORRECT.

    My next query is if they have not claimed this amount in under tax exemption in that FY (Considered as Income), whether still the income on the investment on this amount would get added to my income

  126. suresh says:

    Please guide me on the way i can recieve 30L help from my father(which is his saving) to buy a property for my own purpose

  127. Siddharth Sharma says:

    Hi – My mother-in-law owns a house property in Delhi which she wants to sell off and then gift the cash sale proceeds to my wife. My wife shall use this money to invest in another house property in Delhi.

    I see the below two alternatives:

    1) Should my mother-in-law first sell off the property in her own name and then gift the proceeds to my wife? This way, I suspect, my mother-in-law would need to pay capital gains tax on the sale transaction.

    OR

    2) Should my mother-in-law first transfer the property to my wife through a gift deed? After the gift deed, as my wife would become the lawful owner of the house, she can sell off the same and can use the sale proceeds to invest in another house property? This way my wife can be saved from paying capital gains tax but I suspect my mother-in-law would still be liable to pay stamp duty charges on gifting the house to my wife.

    Can you suggest which option to choose from the above or is there a third option which I’m missing. Basically I’m looking to save paying Delhi stamp duty charges as well as capital gains tax.

    Thanks

  128. Shekar says:

    I am an NRI (US citizen). My father-in-law who is a resident Indian, wants to gift a certain amount of money to me and my wife but the funds will be transferred to my account. Would this amount attract gift tax?

  129. tinku says:

    My father retired and he sell his pension and received 27 lacs so my father donate me for business he transfer all amount via cheque and netbanking but that time father not did any writing like gift deed any problem in that.

  130. Hemant says:

    Hi,

    I want following information :

    If I gift my mother’s sister Rs. 10,00,000 and she (alone, unmarried, not an earner, age = 45 years) invests that amount somewhere, the income received from such investments are
    First case : well within the tax exempt range for her.
    Second case : above the tax exempt range for her.

    Will that income be clubbed with my income (for calculating my tax liability)?

    Please clarify. Thanks in advance… 😀

  131. nare says:

    i am citizen of u k i want to gift my sister without any occasion from my huf account

  132. RS Singh says:

    My mother is selling a property and depositing the money in a long term capital gain account.
    If i buy a flat, can I use that money from her account as a gift from my mother.

    Secondly, if she sells that property, can she deposit the money in a long term capital gain account in my name. Which I can use to buy a flat later?

    If there is any of such transaction mentioned above where I am getting money from my mother, do I have to make a legal gift deed from notary ? Or is there some other way.

    Thanks

    • HRBlockIndia HRBlockIndia says:

      Dear Mr. Singh,
      You can use that amount as a gift from her, provided you have the required gift deed. The answer to the second part is that the name of the capital gain account has to be the name of the seller of the property.

      • RS Singh says:

        Thank you so much for a prompt reply.

        Since you mentioned that I can use that money provided I have a gift deed done, I want to know if she would have to pay tax on that amount since she would not use it to buy a property but I am.

        As of now I am aware that a long term capital gain account can be used to deposit money from a sale of property, and reinvest in a new property so that no tax is deducted.

        If she has to pay tax on the amount she doesn’t use to buy a property, instead gifts me, how can we avoid paying tax, since as a family member I am buying a property for our personal use.

        Thanks once again. Your comments are really helpful.
        Regards

  133. Raj Patel says:

    Dear sir, Will there be any kind of gift tax levied for below mentioned transaction.
    Step-1 A person(A) gives gift to his father (B).
    Step-2 His father(B) gives gift to his sister’s daughter in law (C).
    Step-3 Daughter in law (C) gives gift to her daughter.

  134. RS Singh says:

    Thank you so much for a prompt reply.

    Since you mentioned that I can use that money provided I have a gift deed done, I want to know if she would have to pay tax on that amount since she would not use it to buy a property but I am.

    As of now I am aware that a long term capital gain account can be used to deposit money from a sale of property, and reinvest in a new property so that no tax is deducted.

    If she has to pay tax on the amount she doesn’t use to buy a property, instead gifts me, how can we avoid paying tax, since as a family member I am buying a property for our personal use.

    Thanks once again. Your comments are really helpful.
    Regards

  135. Jignesh bagadia says:

    If NRI parents &grand mother gift a flat to their indian son who is not NRI by way of registered gift deed &son who is getting flat as gift can sale that flat(received as a gift) to somebody .is there is any time limit or he can sale that flat with in one month.how long term capital gain tax calculated.

  136. Sandeep says:

    Hi
    My father sold a piece of land in April 2014, the sale proceeds about 40 lakhs were received in cash (as per sale deed) he then gifted the same amount to me in cash and I deposited the same amount in my bank account 2 days later. My father has paid capital gains tax on this sale. What are the tax implications for me in this situation.

  137. Parimala says:

    Dear sir
    Can my own brothers wife gift her flat which is on her name to my son without inviting income tax on that gifted property.she lives in India my son usa citizen.

  138. vikram says:

    HI, my mother wants to gift 40 lakhs to me, i want to know if there is any income tax enquiry what steps do i have to take next.

  139. Hanumanth says:

    My father sold the house which he owned and distributed the amount to me, my brother and sisters. I want to know if the amount that I received from my father is taxable or not. If taxable, then under what sections the tax payable can be minimized. Please let me know.

    Thank & Regards,

  140. ARNAB CHANDRA says:

    HELLO SIR,
    I’M 25 YEARS OLD. MY FATHER IS A RETIRED GOVERNMENT EMPLOYEE. RECENTLY I TOOK RS.250000 FROM MY FATHER FOR BUYING CAR.
    AND I INVESTED THAT CAR IN BUSINESS. I WANTED TO KNOW IN CASE OF TAX SCRUTINY IF MY FATHER HAS TO ANSWER FOR THAT MONEY HE GAVE ME. AND WHAT IS YOUR SUGGESTION. PLEASE HELP ME I DON’T WANT TO GIVE MY FATHER ANY KIND OF PAIN IN THIS REGARD.

    THANKS

  141. SATHISH KUMAR says:

    Sir,
    It is regarding Gift tax in India. I would like to gift some amount to my Mother-in-law. If she in turn gifts the same amount to my Wife, whether I should consider clubbing of income. Please reply.

  142. vijay arora says:

    gift received on occasion of marriage from non resident in foreign currency.Is there any limit in FEMA ACT???

  143. Ravi says:

    Hello Sir,
    Can a non relative give a gift, say 10 lakhs. What will be the tax payable on this amount. Thanks.

  144. BHAVYA GUPTA says:

    If a student from australia wants to remit funds to his mother in india what is the maximum amount that is exempt in his mother’s hands

  145. Amit says:

    Sir,
    Its regarding my uncle flats,
    My uncle owns 2 flats one in Mumbai and one in Alibaug, he is alone and his wife has passed away in 1994 with no children and my uncle age is 86.
    We are his brother son who are staying with him since our birth, and now he wish to give his Mumbai flat to both of us and Alibaug flat to by elder brother.
    So can this be possible by just writing a will by my uncle in which he will mentioned his will for his flats
    Pls help

  146. SANJEEV SHARMA says:

    MY BROTHER SEND ME RS. 1000000/- FROM FOREIGN. HE IS NRI, IS THE AMOUNT IS TAXABLE FOR ME???

  147. Barnali says:

    Hello sir, Iam an NRI and I have transferred around 3-4 lakhs to my fathers account for purchasing a property for me in India. My father seems to be noticing too much tax cut off in his earnings this year compared to last year. Can you please let me know if the amount that I transferred to my father was taxable ? If No, then does he need to specify our relationship in any IT tax form? Please let me know. Appreciate your efforts in helping people!

  148. meena jain says:

    I am a house wife. My daughter has been in USA for 5 months and send me around 1 lac rupee per month on an average. For these amount I have opened a recurring deposit account in which I deposit 1 lac rupee per month. My husband works in a private firm and his annual income is around 1 lac rupee. My questions are –
    1. Is the amount i received from my daughter who is working abroad is taxable..?
    2. As I am a house wife and has no monthly income but as i told i deposit 1 lac rupee per month in my recurring deposit account and the interest i will earn on that will be more than 10,000 rupee in a financial year so Can i submit form 15G to avoid TDS deduction by the bank..?
    3. If i do not opt recurring deposit account for investment then what is other option for my daughter to save tax.

  149. AK MALHOTRA says:

    Dear Sir,
    I had booked an apartment in favour of my unmarried daughter out of Love and affection . I have paid all the instalments over a period of time, last one in November 2016. My daughter has issued Form No.16 B to the owner since the apartment is in her name. Meanwhile my daughter is married and is working. According to the Income Tax Act 1961,this transaction which should be treated as a gift from a father to his daughter should not be taxable. I am a retired Officer of the rank of an Addl. Secy and for last 5 Years working as Consultant with a Pvt Firm. You are requested to confirm my presumption regarding non-tax ability of the gift as described

    • HRBlockIndia HRBlockIndia says:

      Hi,
      The apartment will be considered a gift from a relative so it will not be taxable for your daughter. however, any income arising from the apartment will be taxable for her.

  150. samir says:

    Hello,
    I am NRI working in Qatar and wish to give 5 Lakhs rupees from my NRE account to my working wife to clear her loan amount.
    What are the Tax Implications on this transaction. Also what is maximum amount I can gift her in form of money?

    Thanks in advance.

    Regards,
    Samir

  151. Anjul says:

    Dear Sir,
    I celebrated my son’s first birthday in the month of october 2016. I have a cash of 1.76 lakh rupees as a gift from different people. Can I deposit it in his account. I am the guardian in his account. If I deposit this amount in his account then will I be liable for paying tax.

  152. Suresh Inti says:

    I am NRI ( Staying abroad for more than 183 days) for the past 7 years. This year i will not be able to complete my 183 days outside india due to some unavoidable reasons. What will be my income tax implications for this year. What about the money remitted in this year in my nre account. I have indian income of Rs 1 Lakh PA only.

  153. N K Agawral says:

    Can a gift by Grand mother (Nani) to her daughter’son for more than 10 Lacs, who is residing outside India (foreign national) along with his mother exempt from tax. Will a gift deed need to be prepare in this case.

  154. Rajesh says:

    Hi.
    Can a person, owning a property, gift only the right to rent to his grandson (which would not attract gift tax) ?
    Would the rent then be taken as the income of the grandson ?
    If the grandson is an NRI and has no other income in India, would this be taxable in India ?

    Thanks and regards

    Rajesh

  155. Ritesh says:

    Thanks for the informative article. But my issue is more problematic than this.

    As we keep our cash gifts received with parents, you know before we start actual spending or start earning( when we are young). I had about 70-80K in gifts collected over few years kept with my mother as lived in a hostel. Now due to this demonetization step, I had to deposit all that in my account. But I am a salaried person now and will be filling tax return this year for the first time. Do I have to show this deposit as my income and pay taxes, as only 50K is tax exempt?

  156. NITA KAPUR says:

    I have an adopted brother not legally. i have transferred my residential property in the name of his wife.

    what is the tax liability and when to pay.

  157. Phanindra ganti says:

    Whether gift(s) given to daughter-in-law ( wife of the son) ( not in connection with any occassion, but just like that)will be exempt from being treated as income in the hands of the donors ( in-laws) ?

  158. Satish says:

    Hi,

    My Wife intends to send me 5 lakhs through her account as a gift to my bank account.
    I understand that I will not be taxed if this amount has been taxed at my Wife’s end.

    But please help me understand how will Bank understand if this amount transferred to my account by my wife is a gift?

    Thanks,
    Satish

  159. Raja says:

    I live with my mother, unmarried sister along with my wife and a child in a flat that is 20 years old. The flat is in my mother’s name. She will give me my share of 25 lakhs Rupees after it is sold via cheque/dd. As per your answers above, I understand that it would not attract any tax to me. My queries are:
    1. Is that amount which I will receive will be non taxable to me ONLY AFTER she pays her own taxes first? Because, she plans to buy another flat sooner or later in the future.
    2. Would she have to pay capital gains if she buys the property within 2 years?
    3. Is it necessary to notarize the gift deed for legal and tax purpose?
    4. I am an individual and not a HUF. Will I still be eligible for tax exempt?

    Thank you very much in advance. Your help will be appreciated.

  160. Ranga says:

    i have received an amount off rs5lac from my married daughter thro bank entry.
    I have deposited the same in FD & using the interest for my maintenance.
    Is the Principal 5lac amount taxable to me & what is the max amt i can receive,
    Whether this amt to be treated by me as Loan or Gift & How it should be documented by both of us to IT.
    i want to return this amount once i sell my house say after 5 yrs.
    So if i receive it as gift now, can it be returned.

  161. Dr Prabhat Tandon says:

    My father in law transferred rs 2 lac in my son account as a gift to use the money in setting up the clinic . Would it be taxable ? What type of documents should we need to keep in future regarding the IT queries ?

  162. Raj says:

    Hi,
    I have following query
    I plan to purchase a flat in Mumbai. My mother owns a plot in Pune which she wants to gift me. After she gifts me plot, I plan to sell the plot immediately and the sale consideration of the plot will be used to pay the cost of flat in Mumbai.
    In the above scenario
    1. Can my mother gift me a plot thru gift deed
    2. Do my mother or myself needs to pay any taxes on the gift?
    3. What is the stamp duty amount on gift deed
    4. Do I need to pay any taxes if I sell plot and use the proceeds to pay the cost of flat
    Regards,
    Raj

  163. Alok Mishra says:

    Good moring sir ! i want to know that A gift of rs. 5 lac or 20 lac wich is donate by the father to his son is lible for any tax liability according the income tax law ?please help me & thanks.and another questionis this my father had sold his an agricultural land for rs.10 lac & he invest total money in Rec Bond & at the time of maturity after 3 years locking period thus money rs.10 lac is lible once again for capital gain tax ? or he usd that money in any other purpose a ke that fds or any other investment? please help me & suggest me thanks.please reply me.

  164. Tenzin says:

    A Car gift from Disciple to Guru or Master, is it tax exempted? if yes please specify under which tax law or rule.

  165. Abhilasha Sharma says:

    Thanks for sharing such a great blog. I find this on google thats is very informative for me.

  166. Rishi says:

    My mother want to help me buy a flat. She is ready to pay more than 50% amount and I am taking loan for the remaining amount. As for taking the loan, bank is not allowing the down payment from mom’s account. So if I transfer the amount from mom’s account to my own account and then make the payment to builder, what are the consequences of transferring the amount from mom’s account to my account from tax perspective.

  167. virendra chawla says:

    Hello sir
    My income is less than 250000 . my father in low wants to gift rs. How much will he give to me is tax free.the gift is including my income same year for tax slabe?? Can he give to me gift from his farm???

    • Abhiraj says:

      My mother has given a loan to me in FY 2009-10.
      Now I want the same loan amount as a gift from her.
      Whether I can get the same as a gift by preparing gift deed in FY 2016-17.

  168. Manish says:

    I’ve an old property (30yrs old) now I want to sold it and give away total money as gift to my son. Does any capital gain tax will applied over here ….

  169. Nitasha says:

    Hi,

    Can a father give Rs 10 Lac as gift to a daughter. Please note daughter is not minor and both come sunder 30 perct Slab. Do we need to prepare a deed and is there a limit of number of transactions for this gift ?

  170. Aditya says:

    Hi Aditya here. I earn 15k , 20 k per month. But My mother has gifted me some money which I invested in fixed deposits on various occasions.. Now that amount has crossed 10 lak. and TDS gets deducted from them. Now there are some people who told me that every time I take money from my mother i should have gift deed? is it true? And also I dont pay tax. Do i have to fill IT returns for my FDs? Please Suggest ..I have never filled IT returns before.. So please explain in layman terms.. Thanks In advance

  171. rajendra says:

    i had purchased flat in 1995 in thane in my and wifes name jointly and paid relevant stamp duty bt didnt register it out of negiligence . the relevant flat consideration was fully paid by me and in my soceity by submiting sellers document and buyers dociment i got sharecertificate in joint names.now my lawyer says since last two years old registerations are closed by maharastra govt.the said flat consideration bought i have showed in my file only as consideration i hd paid. and he has suggesting to register is make a gift deed and ur wife will gift u her share to u and then that way by sunmitting relevant papers to registeration dept and stamp duty dept by paying relevant charges and makimg gift deed registration will happen
    so sir kindly suggest is this proper
    further let me if this proper then in IT return i hv showed in only my balancesheet.so nw if gift deed nw made how should i show in balancesheet.same as before obviously bt stampduty and registeration charges will be shown in orther income.bt in cross verification ny govt the said property will be shown as bought in 2017 or 1995
    further if i sell this flat in market after 6 months what will be capital gains tax frm 1995 or 2017.kindly suggest corrrect way please as all this happen due to late registration

  172. R.K.Gupta says:

    Sir,
    I want to know how much amt can given by father to his son as per income tax act for Exempt income treat in son income.If not limit so how can give money to his son.

  173. Sandip says:

    My father was retirerd from govt job and he wants to invest Rs 10LAKH for me and 10LAKH for my mother. She is a housewife and I am also jobless aged 25. what is tax libality for me and my mother.

  174. Agarwal says:

    Sir,

    My Mother want to buy a property and setup a Industry and she is already a Tax Payer. But she is lagging the amount to buy the Property and start the industry .

    Whether the Gift made by me is Taxable ?
    Whether the Income Generated from the New Industry started by my mother will be clubbed to me ?

  175. Gurdeep Singh says:

    an uncle of my wife said he had given rs 500000/- rs five lacs as help to my father in law for the marriage . my father in law said on a particular date he had given us 13,50,000 in cash which he has not given for marriage. can he be came under IT act? any action we can taken through IT rules. Beside this he also claims to spent rs 10 lac on marriage.

    Regards

    G Singh

  176. AB says:

    My Grandfather has a property in Delhi since 1980 from DDA.
    Recently we have sold this property & goth the money in grandfather account.
    My Grandfather has two sons, we all are thinking to buy two house in Noida , each for one brother.
    For that my grandfather has given the cheques of equal amount to both the sons.
    Now my question are:
    1. Will both the brothers get Long term tax benifits if they use that money in buying a house within 2 years.
    2. Is all the above things will valid, if they transfer the amount to grandson intead of son

  177. Minakshi Kumar says:

    My son is an NRI and has just joined a job in Australia. He has a very small interest income in India.
    If I gift him a large amount of money, say about Rs 20 lakh, does he have to file Income Tax Return in India, even though he has no taxable income?

  178. Satish says:

    My query is regarding capital gain tax on gifted property.

    – My father purchased a house plot in 1990 for 1,00,000 rupees. ( Registration cost is 9,000 rupees)
    – He Constructed a house in 1991 for 5,00,000 rupees.
    – My father gifted that property to his son (me) on 10th February 2017 (around 1 month)
    – Now I want to sell that property to prospective buyer for 1,20,00,000 (1 crore 20 lakhs) rupees in another 20 days ( less than 2 months after I got property as gift).

    Long term capital gain is rupees 84,99,603.

    Now my question is
    1. Since the property is acquired as gift and sold within 2 months after I got it as gift. Should I consider the capital gain amount as STCG or LTCG?
    2. If I consider it as LTCG, then I can invest that amount in another residential property as per 54 / 54F?
    3. Since I got the gift from my father and sold the property within 2 or 3 months after acquiring it, do I need to pay any tax. If so the please let me know the Income tax section which I can refer.

    It will be really helpful if I could get some answer for this.

  179. rajesh says:

    Hi, A house property was self accquired by my elder brother. Land Purchased on:20.02.1979
    Ground Floor Constructed on: 16.06.1982 First Floor Constructed on:12.10.1998(along with
    renovation on ground floor) On the demise of my elder brother, my bhabhi and her 3 sons
    inherited the property.(now 4 owners of the said property) These 4 owners jointly gifted
    the said property by a registered gift deed without consideration to me and my wife.

    The stamp duty was paid on the gift deed as per the circle rate valuation of Rs. 17 lacs.

    1. What would be our capital gain if the property is sold for 1 cr.?
    1. What would be our cost of acquisition? The cost of purchase of house by my brother in
    20.02.1979 was around 1 lac.

    There is another option proposed by the buyer of the property. He is willing to pay 75
    lacs+ give us a flat valued at Rs.25 lacs.

    3. How is the tax treatment of the flat given in exchange worked out?

    I intend to purchase a house in my sons name from the sale proceeds.

    If the property is purchased out of the capital gains in joint name of myself, my wife and
    my son, will it be given tax benefit?

  180. Rajnish Mishra says:

    I want to know that my nanaji purchased land on name of my mother in 1984 of 5000/ rupees she was major that time now my mother wants to gift that property to nanaji my mother is tax payer could be any tax possible on my mother. Please reply on this regard

  181. shaukat alam says:

    I am a govt. employee filing returns and pay income tax properly. My son-in-law who is a NRI wants to give me a cash gift of rs. 15 lakhs for repayment of my house building loan.Is it taxable amount ? have i to pay income tax on it?

  182. Rashmi Gangat says:

    Can a Bhatija gift property to his uncle (Maama)? Shall Mama has to pay tax (ifos) even if he has paid all the Stamp duties and registeration charges ?

    • HRBlockIndia HRBlockIndia says:

      Yes you can for sure gift the property to your mama but as per section 56 you will not be a covered relative for your mama. As such any gift received by your mama from you without consideration or for an inadequate consideration, will be taxable in his hand if the value of such gift exceeds Rs. 50,000 for the F.Y.
      But instead of you gifting this property to your mama if your mother or your father gift it to your mama then it will be exempt u/s 56 as your father and mother will constitute relative for your mama.

  183. Rashmi Gangar says:

    Can a Gifted Property be again gifted within 1 month ? Are there any tax consequences?

    • HRBlockIndia HRBlockIndia says:

      Yes you can for sure gift it to the covered relative without any tax impact. But you should keep in mind the clubbing provisions while making the decision of subsequent gift. Ex. if you gift the property to you wife without any consideration or for an inadequate consideration then the clubbing of income will come into picture and any income received by her from the said property will be taxable in your hand only. This will be so even if you are no more the owner of the gifted property.

  184. Ankit says:

    Hi,

    If my father wants to sell his plot, and he is not investing it anywhere i.e. not purchasing any property and gifting the amount which he will get from the deal.
    1. Will he has to pay tax on the amount which he will get?
    2. Can he first gift me that plot and I will sell it, and using that amount I will close my Home Loan, is it possible? If yes, that what process I need to complete for this?

    Regards
    AK

    • HRBlockIndia HRBlockIndia says:

      Any profit arising on sale of any capital asset including immovable property is subject to capital gain tax. Depending on the nature of capital gain (i.e. short term/ long term) it will be taxable either at 20% post indexation or as per your slab rate as the case may be. In case of Long Term Capital Gain you can claim exemption if you reinvest it as per the provisions of section 54/54F/54EC in purchase of a house/or specified securities.
      Capital Gain tax is payable irrespective of whether you or your father sell the plot. Further any gift received by you from your father will be exempt in both of your hands, but if you sell the plot in future capital gain tax implications will fall in your hand.
      You don’t get section 54/54F exemption for closing an existing home loan. But if you have purchased this house within a period of one year before the sale of plot then there is still a possibility of claiming exemption under section 54F. For exploring more on the eligibility to claim section 54F exemption you can contact H&R Block Tax Experts, who will help you in taking the correct decision.

      • Ankit says:

        Thanks for response.
        What if, My father transfer the land on my name (will do this by process like registration and stamp duty payment), and then I will sell this land and close / reduce my home loan, can it save my tax?

        Regards
        AK

  185. AU Siddiqui says:

    Hi- My mother’s sister(that means my aunt) residing in USA wishes to send me money.Is there a limit to how much she can send. If she sends more than 50000 Rs -would it be taxable

  186. Seshukumar says:

    Dear Sir

    My father in law wants to gift a land worth 4.5 Lakhs, Whats the gift deed tax he need to pay

  187. Seshukumar says:

    Sorry, My father in law wants to gift his daughter a land worth 4.5 Lakhs, Whats the gift deed tax he need to pay

  188. Nikhil says:

    Hi,

    I am salaried person and come in 30% Tax bracket. My sister is unmarried and does not have any income source. Is there any Tax implication if I do following :-
    a) Transfer 30k from my salary bank account every month to my sister saving bank account. Do i need to create Gift deed every month for documentation purpose ?
    b) Assuming FD is created every month for this 30K in her bank account, Can she still deposit Form 15G in her bank as her total taxable income from Bank FD interest will be lesser than minimum tax slab of 2.5 lakhs. She would like to deposit 15G so that bank does not deduct 10% TDS as she does/will Not file income Tax return.

    Someone said to me that clubbing provision will apply. Please help to clarify.

    Thanks

  189. LOVVE YELAPATI says:

    hi,
    my father farmer,his income came from only agriculture, no other income sources ,i am married and two daughters,my husband working with a MNC&TAX PAYER, i am house wife no source of income ,my father wants to gift me 10 lack cash in my account, is it taxable for me or my father.

  190. LOVVE YELAPATI says:

    please answer sir

  191. shyam saraf says:

    If I gift any amount to my wife (House wife – not earning any income), then can the same be reduced from my taxable income? If yes then what documents are required to prove the same during IT returns filing

  192. Vishwas Gupta says:

    Has there been any changes in the gifting rules as per the new finance bill introduced in 2017? Specifically, can parents still gift in access of Rs 50000/- to their children who are major?

  193. mirnance says:

    I live in U.S and planning to gift a car to my parents as a surprise, I don’t have any accounts in India under my name but wife’s NRE, so if I purchase the car from that account will that be deemed as a gift from spouse to in-laws? and is it taxable

  194. Rama says:

    Hi,

    I am planning to gift 15L to my father and then he is going to invest this amount into stocks and mutual funds. Is there any tax implications or this will attract clubbing of profit in my income?

    Thanks,
    RK

    • pankaj says:

      you can give gift to your father. gain from stock or mutual fund which is your father income only. same tax liabilities of your father only.

      but make sure that gift deed prepared . and fund transfer through only account payee CHQ. or RTGS

  195. Ashok Puri says:

    Sir,

    Can gift Rs. 5 lac to my minor grandson (daughter’s son) in the shape of F.D. from my pensionery benefits. Is this amount taxable at any stage and interest accrued thereon.

  196. Ruban says:

    Hi My sister is not working and divorced and depending on me for her living expenses, i am paying Rs.12000/month, Can i show this amount to get tax exception for my income?

  197. D.R.Gunnala says:

    My Father-in-law is giving Rs. 10 lakhs to my wife as gift, whether my wife should pay any tax for this amount. Kindly explain it

  198. Jignesh says:

    Hi,
    My father has purchased shares on my name before 5 years. Payment of this shares also given by our joint account but all the money in this bank account belongs to my father only.

    Problem is I have not shown shares in my income tax return filing. I’m filling Income Tax return as business Income by Updating Capital A/c, P&L A/c, & Balance Sheet.

    Now my question is, how to show this shares in my income tax return filling.

    At present, we are selling this shares from old trading & demat accounts and purchasing in newly opened demat & trading account which I will show in my return filling now onwards.

    Is it right way? Can we justify it, in any query of Income Tax department?

    One more question, can we make gift deed in afterward date of fund transfer date???

  199. Ramesh Kumar says:

    The main article mentions Lineal Descendants, Isn’t Lineal Ascendants also included as per the Act ?

  200. Prakash says:

    Can my father or mother give gift cheque of Rs. 1 lakh to my wife. is it taxable?
    can i give interest free loan to my wife from my saving account & my huf account to invest her in bond.

  201. Prakash says:

    Hi My sister is not working and divorced and depending on me for her living expenses, i am paying Rs.12000/month, Can i show this amount to get tax exception for my income?

  202. Kumar says:

    If my friend sends me 3 crore Indian rupees from US as a wedding gift. Would it be taxable ?

  203. lalit tyagi says:

    hello sir , my father is retired servant he wants to transfer his savings from closed FDs & agriculture to my account… is this taxable or tax free ?
    and if … than what is legal step i or he has to taken… please inform in detail… thank you..

  204. karun says:

    My father transfers 70lakhs to my account to buy a home, do I need to pay tax for it ?
    Its required to write on the stamp paper about the transaction and get notary sign on it?

  205. Bhaskar says:

    1. My NRI children send me and my wife money regularly to help us. Can we treat these as gifts?
    2. Are these amounts taxable?
    3. Do we have to report these amounts under “Exempt Income” in the ITR Form?

  206. juzerbanswadi says:

    Hello Sir,
    I have few questions
    1. my father in law sold one property, he is repaying his debt and he want to pay me also , and I want to buy a property with that amount ?what is possibility through which he can save capital gain tax.
    2. Can he buy a property and gift me as I am his son in law??

  207. Pankai says:

    My brother wish to gift me 1.5 lakhs as gift. I am a tax payer. Will it come under taxable income for me. Both brother and me are salaried employees.

  208. RAMESH CHANDRA SOMANI says:

    Sir
    Can daughter gift her Senior Citizen Mother Rs 01 Million so that she can invest in Sr Citizen Schemes .
    Both have PAN-CARD AADHAR CARD BANK-ACCOUNT
    BOTH FILES -INCOME TAX RETURN EVERY YEAR
    THANKS

  209. Prabal Jindal says:

    If my father owns a land in Punjab since past 10 years. The collector rate for which at that time was around Rs. 1,00,000. If he gifts it to me and the market value of Rs. 50,00,000 is mentioned in the deed, will I have to pay any Capital Gains Tax?

  210. Kevin says:

    Hi, I’m an Overseas citizen, of Australia. My parents live in India. Wondering what is the maximum amountvI can send’em as a gift. Would it be chargeble? If yes, than at what rate? Will appreciate your answer. Thank you.

  211. Alok Mishra says:

    Sir namaskar,mujhe janana hai ki kya ek pita dwara apne bete ko ek vitt-varsh me cash gift ka amount jo ki unregistered ho aur by cheq ho kya uski koi limit hai ? please guide me .thanks.

  212. Alok Mishra says:

    Ek prashna aur hai sir,kya pati dwara apni berojgar patni ko yadi koi bhi amount jo ki 50,000/-se jyada hodeta hai to patni us amount ko yadi usi vitt varsh me FD kar deti hai to kya us fd per milne wala interest pati ki income me judega ?

  213. Vikas Sharma says:

    Hi,

    I am an employee working with Pvt company. I am paying TDS on my salary. I want to know if I gift money to my mother will I be able to get a return on that. If yes what is the process of gifting money legally, Under what section can I claim returns on it. It will be of great help if you can guide me through the process.

    Regards,
    Vikas Sharma

  214. rahul sharma says:

    my father gave some amount in cheque as gift to me. the same was deposited in bank as a fixed deposit. bank has deducted TDS on the interest on the fixed deposit. how do i claim the benefit in income tax return and avail rebate on the TDS deducted?

  215. Akhil Vats says:

    Hi Sir,

    My father transferred 8 lakhs into my account, which i invested in the form of FD. Is there any gift tax on it. Also the income arising due to interest on it will be clubbed with my father or only i have to pay TDS on it.

    Thank You .

  216. Tamilpandi says:

    If an older person from Tamil Nadu wants to give his land and house (on that land) to a younger person who is not his relative, what is the best (cheapest) method to do so? Using will or gift or sale without receiving cash for sale, etc?

  217. aman kapila says:

    hi HR Block

    i have a cousin brother living in USA and he need urget of 1.5 crore rupees (almost $ 300000) . can i give him cash gift.

    would there be any tax in india on cash gift and if yes how much….

    please reply it is urgent….

    thanks
    aman kapila

  218. Puneet says:

    Is there any impact of GST on amount which we transfer to Relatives as Gift.. Any limit and slabs, extra charges would be applied.. It would be nice, if you can update on this something..

  219. Jignesh says:

    Hi,
    My father has purchased shares on my name before 5 years. Payment of this shares also given by our joint account but all the money in this bank account belongs to my father only.

    Problem is I have not shown shares in my income tax return filing. I’m filling Income Tax return as business Income by Updating Capital A/c, P&L A/c, & Balance Sheet.

    Now my question is, how to show this shares in my income tax return filling.

    At present, we are selling this shares from old trading & demat accounts and purchasing in newly opened demat & trading account which I will show in my return filling now onwards.

    Is it right way? Can we justify it, in any query of Income Tax department?

    One more question, can we make gift deed in afterward date of fund transfer date???

  220. Alok Mishra says:

    3rd july2017 ko maine question kiya tha sir aj tak answer nhi mila . please ans.dijiye.thanks.

  221. amit says:

    gift deed require in case of cash gift from father to son.

  222. Sandeep says:

    I sold my property in 45 lacs after residing in for 30 years, gift RS 15 lac to my younger brother for a new home. So whether me or my brother is having any tax liability.

  223. G singh says:

    I have sold a property inherited from my grand father along with my mother sister n uncle as my father died….. The property was sold @ 2600000 which was divided into two parts @1300000 each between my uncle n me…. But i by mistake received a sum of rs. 900000 direct in my mothers account and rest amount into my account…. But i hv filed income tax returns showing the entire amount rs. 1300000 as my consideration as my mother has nil income and dont file returns….will there be any any problm in future?? Please guide

  224. Dr G V Niranjan says:

    Sir, My father gifted his property to me a decade back and living separately Since 05 years he is staying in a separate . portion of the gifted property and for which he is paying monthly rent. I am filing IT returns showing this rental amount as my income. My query is Whether this RENT can be considered as MY Income Or NOT. Please Inform.

  225. Raj Bhaskar says:

    Hi,
    My elder sister is married and giving me 4,00,000 from her current a/c to my savings for purchasing Flat for me. Also my father giving me 1,50,000.
    Is the amount will be taxable?
    Is there we a deed for that collected amount?
    Thanks

  226. Sunny says:

    I am not having any income but I am depositing cheque from my mother to my account every month also there was a policy which matured and transferred to my account but that policy was also gifted to me as the policy was paid by mother do I have to file returns

  227. Alok Mishra says:

    54 ec capital gain scheme ke tahat jis prakar rec bond me deposit amount ko 3 varsh ke locking period ke bad hum kaise bhi upyog kare dubara us amount per koi liability nhi banti hai. kya usi prakarisi capital gain ke tahat bank me deposit amount me bhi koi locking period hota hai ? Aur kya is amount ko bhi bond ki hi tarah after locking period hum kisi bhi tarah iska upyog kar sakte hai ya aur koi process hai .sath hi jaise bond me yearly 50,00000 se jyada nhi deposit kar sakte hai kya bank me bhi koi limit hai please reply me .thanks

  228. Kish says:

    in ITR2 Form where should one declare the marriage gift amount when filing return?

    • HRBlockIndia HRBlockIndia says:

      You will have to declare the marriage gift in ‘Schedule Exempt Income’ (Schedule EI) under ‘Others, including exempt income of minor child’ section in ITR 2.

  229. vabz says:

    HI,

    My father gave me a 17lacs in FY16-17 via online transfer from his account to my account which was his savings from his FD.

    Do i need to show in my returns?
    Do i need to pay tax on the same?

    Regards,

  230. sameer says:

    My per year income is approx 4 lakh, I received Rs. 7 lakh in my salary account through transfer as gift from my father in law before I got married with his daughter. Is there any chance to enquiry from IT department? Or, Will I have to pay any tax for the said amount?

  231. Subramaniyan says:

    Dear Niteesh Sir,

    I have a query. If a friend of mine were to gift me a flat worth 30 lacs, what would be my tax liability? Would it be 30% of the flat value which would amount to 9 lacs or would my liability be the Stamp value of the flat i.e. 10% (3 lacs)?
    As this would be a gift from a non-family member, I assume it would be treated as “Income from other sources” and hence for a 30 lac rupees flat, what would be the exact tax liability?
    Please respond.
    Thanks in advance.
    S. Subramaniyan

  232. Rajni Rastogi says:

    Hi, I am a salaried individual currently in the 30% tax bracket. My mother in law is a retired school teacher, with annual income significantly under the taxable income limit. If I gift her 10 lacs to her through a simple bank transfer, would it lead to clubbing provisions or the income arising from that gift will be taxable in my mother in law’s hands? What kind of paperwork would I need to undertake to make that gift?

  233. Alok Mishra says:

    Sir please 29 july wale mere question ka ans dijiye .dhanyvad

  234. Krishna says:

    Hi. I will receive Rs 10 lakhs from my grandmother to buy a flat. I know that this income is tax exempt. But how do I prove that this money is from a blood relation? What sort of documentation do I need? Will a simple letter by my grandmother do? She is very old and her handwriting is not very legible.

  235. Alok Kala says:

    Hi
    I have just one query.
    Can my mother or father pay for gifts I purchase for someone… if yes then what would be that entry…

    Thank you

  236. Rahul says:

    My Father has given me INR 11.00 Lacs by Cheque Mode into my Home Loan Account to clear my Home Loan outstanding and My father is a retired Government officer and recently he has sell one property worth INR 10,20,000/- and this property was belong to my Grand Father and Property is more than 60 years old.

    Now request to please confirm how can I show 11.00 Lacs into my ITR because it is a gift from my father and I am Jobless now and unble to pay my home loan EMI and my father help me

    or

    I have to shown this amount as a Family Loan so that I can save Tax.

  237. Vinayak says:

    Hi
    I wanted to give gift amount of Rs. 15 lacs each to my mother and father out of sales proceeds received from sale of my Flat. They will invest in FDs and earned income on that which is not taxable in their hand as a senior citizen. (Below taxable limit)
    Q1. Then should I need to pay tax on that interest income??
    Q2. Should I need to pay tax on gift given to my mother & father??
    Q3. After 2 yrs they will return all money including interest to me to pay builder for purchase of under construction house property, then again Is this gift from my mother and father taxable in their hands.??

  238. wahid says:

    I am planning to give cash as gift to the daughter of my very old friend in India on her wedding. The amount will be transferred to her account directly from my NRE account. Is there a format of the letter or agreement which I should forward along with it so that he can keep as a supporting in case income tax authorities want some proof? What details are to be included in such agreement / letter?

    • HRBlockIndia HRBlockIndia says:

      If the gift is of high value, it is recommended that the gift is supported by a gift deed dated close to the wedding. Refer to the gift deed format in the blog to know about the details that are to be present in the document.

  239. JK says:

    I am an NRI living in Kuwait, How much money I can put in my kids account as FD now in a year for their future studies and marriage expense. Will there be any TAX liability? Can I open an NRE account in their name?

  240. Rajesh says:

    How about an employer giving gift card worth Rs.50,000/- to his employees. Will it be tax exempted? If so, is it possible to pay part of employee’s CTC as gift card ?

  241. sant kumar kasera says:

    my sister in law gifted me rs.850000/ in cash it is taxable?

  242. Sourabh says:

    I Purchased a house jointly with my mother. 60% was financed through home loan and 40% from savings (10% my mother’s savings and 30% my savings) Given that my mother’s ownership in the house is 50% vs. a 10% contribution does this lead to any tax implications for her when filing taxes or would this be considered as a gift from son which is non taxable?

  243. Neelesh says:

    Hi Team HRBlock

    Have a few queries related to “Gift deed”.
    1. Under which section of Income tax act does it fall.
    2. How to get “Gift deed” legally registered.
    3. How to show “Gift deed” as a proof while doing Income tax filing proof submission.

    Thanks
    Neelesh

  244. Sachin J says:

    Hi Team,

    I am an NRI and have NRI account in India.Can I transfer fund from my NRI account in India to my mother’s Saving account for any commercial investment (Shop,commercial land) she can buy on her name.

    1)Is there any limit to transfer fund to mother’s Saving account (50 Lacks, 1 Cr etc.)?
    2)Is there any document/deed/paper work I or my mother has to submit while transferring fund to my mother’s saving account?
    3)Do I need to pay any tax on transferred fund?
    4)Is there any paper work required while any transaction from NRI account to Relative’s saving account,any limit for transfer.

    Thasnks

  245. Kapil says:

    Hi Niteesh/H&R Block India Team,

    Very nicely written article! Just have a couple of questions. For cash gifts from Children to Parents, is it mandatory to have a gift deed and get it registered? If not registered, what should be the value of stamp paper OR can this be made on plane paper?

    Many thanks! Look forward to your response.

  246. lath says:

    I am NRI , I want to give a new car to my wife(India) as a gift . is there any problem in future ? is it taxable apart from the vehicle tax

  247. Shiwani Sharma says:

    This is a very informative and helpful post, very honest and practical advise. Thank you so much for a detailed post. It’s very helpful for all .Specially this complete information will be helping to all. Thanks!

  248. KOUSHIK DAS says:

    Dear Sir, If I transfer Rs. 90000 to my brother-in-law this year and after some days he returns me back. Can it be taxable to him ? Thank you.

  249. SAFIQUE SARDAR says:

    Sir, for gifting of an immovable property without having any consideration to a non-relative,what would be the tax liability in the hand of donee, and weather the doner is also liable to pay any tax, sir please explain with the applicable sections and provisions, Thank you.

  250. Col AD Anand says:

    I propose to gift a sum of Rs 20,00,000/- (Rupees twenty lakhs) to my wife in the Financial Year 2107-2018. She will invest this money in a FD in her exclusive bank account where I am not a joint account holder. My wife is filing her own Income Tax Return even though she is not working and earning.Her source of income is gifts only.Please clarify the following:- 1. Will her earnings on the gift amount be charged to me for income tax . 2. If I will be charged for the income she earns on the gift,will it be charged to me for income tax for Financial Year 2017-2018 only or for all times to come.
    I will be most grateful for a response.

  251. sharda kotwani says:

    Hi,
    What would be tax implication if my sister transfer money from USA to India.
    1. What is the limit of transfer from US to India.
    2. what is Tax exposure on my income if i am working.
    3. Is there any tax liability-if yes then how much and who will be responsible to pay this.
    4. if My sister transfer money as Loan to me then what would be limit of fund transfer and what are tax implication.
    5. How much is limit of gifting money to blood relatives(if brother or sister)

    Can you help answering above queries.
    Thanks

    • HRBlockIndia HRBlockIndia says:

      Please find the answers in the same order:
      1. There is no limit of transfer from US to India
      2. If it is a gift you won’t be liable to pay any tax on the said amount
      3. There is no tax liability
      4. The fund transfer limit will be USD 14000 per person per year and it may be taxable to your sister residing in the USA
      5. There is no limit for gifting money to relatives specified in the income tax rules

  252. tinku says:

    Dear sir
    my father give me money every year 2 lac rupee for future security and this money put in fd and investment in share market tax implication. but not any gift deed is threir only bank account detail are present.

  253. Sunaina says:

    Hi
    My father wants to sell his property in Delhi. Out of the money received through sale, he wants purchase a flat for himself and gift one flat each to each of his 4 daughters. Is there any tax liability on the amount received through sale by my father and will there be any tax liability on the daughters for the flats purchased and gifted to them by my father?

  254. अभिमन्यु सिंह says:

    अगर सिस्टर को brother की तरफ से शादी मे गिफ्ट दी जाए तो क्या लिमिट होगी ।
    कैश देने की ?
    पिता कितने कैश मे गिफ्ट दे सकता है ?

  255. MANISH says:

    My father wants to give me Rs 300000 from his income. is it taxable to him as well as me?

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