Gift Tax in India

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How to Ensure your Gifts are CATEGORIES
exempted from Gift Tax in India? Allowances
Published by  Niteesh Singh at  March 23, 2017 Tags  Categories  Budget 2016
Budget 2017
Demonetization
E- ling tax return
Form 16
Goods and Services

Tax
H&R Block
In India we express our love and affection through gifts. Brothers gift sisters on Raksha Bandhan. Parents
Income tax
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. Income Tax
Knowledge
But do these gifts turn taxable after a limit? Do your elders need to pay income tax on gifts before
presenting them? Income Tax Refund
How much gift is tax free in india? Income Tax Return
Indians Work
As per the Income Tax Act, 1961 if the value of gifts received is more than Rs. 50,000 a year, then such
Abroad
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. NRI Tax
However, this rule is not applicable if your relatives present the gifts. Now just to escape gift tax in India Personal Finance
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. Quick Read Blogs
These are:
Tax Deduction
Parents Tax Litigation
Spouse
Tax Penalty
Your and your spouse’s brothers and sisters
Tax Planning
Brothers and sisters of your parents
Tax Saving
Your lineal descendants (including spouses)
Tax Saving
Lineal descendants (including spouses) of your spouse
Investments
Also, the gifts can be exempt even if they aren’t received from these relatives, if they are received during
Tax Tips
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 Tax Toto
marriage day or at least close to that date.
Taxation case laws
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. SIGN UP FOR
However, if the amount of gifts received on occasions other than the above and from a person who isn’t a
OUR BLOG
relative as speci ed exceeds Rs. 50,000, then the entire amount would be added to your income. So, don’t
Get noti cations of
make the mistake of adding just Rs. 10,000 to your income, if a friend gifts you Rs. 60,000 for helping his
our latest
parents.
informative and
Gift tax rates interesting blogs
Gift Tax Act was introduced in 1958, amended in 1987 but discarded in 1998.
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The cash or cheque amount, stamp duty value of property and estimated value of other assets will be
chargeable as income. Subscribe!
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 nancial year.
Always get the documentation done when there is an exchange of big gifts and note the occasion on the TAGS
document. It would be easier to convince an assessing o cer at the time of tax scrutiny if the written
500 rupees notes
proofs are ready.
1000 rupees notes
Gift chart as per Income Tax rules black money Claim
Income Tax Refund
Here is nice chart in the form of an infographic which will help you easily understand taxability of gifts, Demonetisation
exemptions and other rules. Please click on the below image to see the full infographic. demonetization
demonetized e- ling e-
veri cation e-verify EPF EVC
le income tax
return online form 16
H&R
Form 26AS GST
Block H&R
Block India home
loan HRA Income
Declaration Scheme
income tax
Income Tax Department
Gift Deed format Income Tax
When you give gift to someone, it is essential to back it up using gift deed. A gift deed is a legal document
Filing Income
which is used to describe the transfer of gift from giver to receiver without any exchange of money. Tax Online
Income Tax
A Gift Deed should include the following-
Refund Income Tax Refund
1. Date and place where Gift Deed is made income tax
Status
2. Details of the giver or donor (name, father’s name, date of birth, address) return ITR ITR 2A lta NPS
PAN parallel economy PPF
3. Details of the receiver or donee (name, father’s name, date of birth, address, relationship with donor)
save tax Section 24 Deductions Tax
4. Relationship of receiver or donee with the giver or donor tax deduction tax refund Tax
5. Details of the property that is being gifted Saving tax saving

investments TDS Union
6. Signatures of donor and donee
Budget 2017-18
7. Details of two witnesses in whose presence the deed was executed VAT
8. Signatures of the witnesses

RECENT COMMENTS
Stamp duty on Gift Deed in blood relation
November 10, 2017
Stamp duty of recommended value has to be paid for registration of Gift Deed. The Stamp duty charges
 Elumalai
differ from state to state and also based on gender. Few states offer a concession in stamp duty if the
commented on
property is gifted to family members.
Section 24 – Income
Tax Bene t on
Gift tax planning tips Interest on Personal
Taxability of gifts to employees in India Loan
Any gift received by an employee from his employer is a perquisite. Perquisites are nothing but a bene t November 10, 2017
that an employee receives from his employer other than salary or wages due to the o ce or position he  HRBlockIndia
holds as a result of his employment. commented on
Children Education
So during a Financial Year, aggregate value of all the gifts or vouchers received by the employee if found
Allowance
to be equal or less than Rs. 5,000 then it is exempt from tax.
Exemption & Rules
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 ARCHIVES
absence of adequate consideration is taxable in the hands of wife due to clubbing provisions.
Select Month
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 signi cant 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 o cer 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 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.
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368 Comments
S Ghosh says: Reply

April 21, 2015 at 11:46 PM
In 2004 my mother sold a residential house in her name and purchased another
residential at 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 recti ed.
HRBlockIndia says: Reply
April 22, 2015 at 1:52 PM
Gift by mother in law to daughter in law is not taxable as it ts in the

de nition of relatives.
Naween Arya says: Reply

October 7, 2016 at 1:30 PM
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: Reply

September 2, 2017 at 9:23 PM
What is the de nition of lineal descendant? Does my wife take

a gift from her father’s real brother’ wife?
Sanjeev Shrivastava says: Reply

October 10, 2017 at 10:49 AM
Sir I have two qustions pls help me out –

Q1 My uncle sold a plot for Rs. 900000/- in current
F.Y and now how can he invest this amount and by
when is there any exemption in this case ?
Q2 My Parents want to gift my children is it taxable

after RS. 50000 pls advice.
rahul bhatta says: Reply

April 22, 2015 at 11:00 AM
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???

April 22, 2015 at 1:35 PM
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 nancial year can
raise a tax enquiry against you.
tabs says: Reply
May 31, 2016 at 5:07 PM
 parents in laws hardly gift their daughter inlaw; they just know 
to take and take….
TK says: Reply
August 29, 2016 at 6:15 PM
Very funny
sunny says: Reply

February 3, 2017 at 11:54 AM
ridiculous thinking
sandip Magar says: Reply

January 19, 2017 at 1:03 PM
Can father in law transfer 50 L to his Daughter in law’s A/c. (

person can show his source of income).
If Yes then what will be stamp duty? Please suggest
ajay says: Reply

March 28, 2017 at 9:55 PM
above rs.50000 received would be declared as your income
V Srikantan says: Reply

April 27, 2015 at 7:54 PM
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

April 28, 2015 at 3:24 PM
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.
sarma says: Reply
May 4, 2015 at 10:25 PM
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 nancial crisis and hence the
need.

August 12, 2015 at 6:11 PM
Yes, you can gift any amount to your sister as gift without having to worry
about the upper limit, since gifts from relatives are not taxable at all.
Kamlesh says: Reply

May 4, 2015 at 10:29 PM
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?

August 12, 2015 at 6:12 PM
No, any amount given to you by your parents will be treated as a gift from
your parents who are relatives according to the de nition of relatives
under the income tax act. Gifts from relatives are not taxable and hence
this income will be tax free.
vidyadhar says: Reply

May 4, 2017 at 12:49 PM
i want to give hand loam or gift to my daughter through son-in-law

account is it taxable
Priyanka says: Reply

May 5, 2015 at 8:31 AM
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: Reply

May 5, 2015 at 2:18 PM
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 ?

August 12, 2015 at 6:27 PM
Gift received from brother or sister of parents is not taxable as

they fall under the de nition 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.
Sahi says: Reply

May 7, 2015 at 8:35 PM
if my maternal uncle ( my mothers brother )gives me gift a Carore will I pay gift tax
Can I invest it in buying house
sunny says: Reply

gifting 1 crore at marriage point of time is okay I believe
Manju M V says: Reply

May 23, 2015 at 1:27 PM
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 at. What would be the tax liabilities for
my wife and the aunt?
Thanks.
JK says: Reply
August 17, 2017 at 11:12 PM
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.
P S BOSE says: Reply

May 27, 2015 at 10:48 AM
MY OWN BROTHER IS GOING TO GIFT A RESIDENTIAL FLAT TO ME. IS THIS WILL
ATTRACT GIFT TAX IN FUTURE?
angel9405 says: Reply

May 29, 2015 at 12:13 AM
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?
Rajeev Pandey says: Reply

May 4, 2017 at 10:01 AM
Need reply
Manu says: Reply

May 30, 2015 at 2:26 AM
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
Ashok says: Reply

June 3, 2015 at 10:34 AM
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.
Ajay kanoi says: Reply

June 12, 2015 at 6:55 PM
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.
Ram says: Reply

June 12, 2015 at 10:46 PM
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.
Ravi says: Reply

June 22, 2015 at 3:46 PM
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 le
the rental income on her PAN? will there be any tax implication on me?
Shashank says: Reply

June 30, 2015 at 3:03 PM
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
BEENA SHARMA says: Reply

July 4, 2015 at 4:55 PM
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
Prakash V says: Reply

July 6, 2015 at 11:21 AM
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.

August 11, 2015 at 6:21 PM
FD gifted to wife is not taxable in her hands. This interest income will be
added to your income as per the rule of clubbing.
Sanjeev says: Reply

October 4, 2017 at 11:57 AM
I Think you are wrong. FD gifted by Husband to wife is tax free,

its ok. But the income generated from the FD interest will be
added to husband income as per rule of clubbing. It will not
treated as income of wife

We have explained the same in this blog under

section ‘How to gift money to wife to save tax?’.
Please refer to this section.
Niketan says: Reply

July 6, 2015 at 2:21 PM
Can I gift money to my mother for her future expenses? Will the money transferred
to her acccount be taxble?

August 11, 2015 at 6:17 PM
No. Money given to mother as a gift is not taxable as per income tax
rules.
Malvika says: Reply

July 13, 2015 at 6:30 PM
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?

August 11, 2015 at 6:04 PM
Gifts received in marriage are not taxable. However if gifts amounting to

more than Rs 50,000 are received from persons other than relatives, they
are taxable.
santanu nundy says: Reply
July 14, 2015 at 3:22 PM
i am a bachelor.my brothet may lose his at due to his own foolishness and to
secure the family…..i want to gift my at in my sister in laws name so that my
brother wont be able to play around with my at.
THANK YOU
S.NUNDY

August 11, 2015 at 6:02 PM
You may gift the at to your sister in law without any tax implications.
Gifts given to family members which includes spouse of brother.
Murlidhar Bulani says: Reply

July 15, 2015 at 10:34 AM
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.
Krishna says: Reply

July 20, 2015 at 9:05 AM
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 le returns.
2. If in future they decide to sell the gifted property what tax implications they will
have?
Thanks
Krishna

August 11, 2015 at 4:03 PM
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 bene t 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 speci ed in the IT Act.
Mohinder Singh says: Reply

April 24, 2016 at 10:08 PM
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.
DS Rautela says: Reply

November 2, 2017 at 7:53 AM
Sir,
My daughter is a NRI and British Citizen. She would like to gift her 50% of
share in a at we own at joint names in Mumbai. Can she do so? If
a rmative how much would be gift tax liability?

November 10, 2017 at 1:48 PM
Assuming, your daughter is gifting the property to you, she can

gift it without attracting taxes, as it falls under the covered
relatives. However, getting a gift deed is always advisable to
avoid future complications. You may have to pay some stamp
duty on the gift deed if you plan to register the property in your
name. Also she needs to check the gift tax liability in her
country of residence.
Shriram says: Reply

July 21, 2015 at 11:54 AM
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 con rm so that I can plan my savings.
Regards
Shriram

August 11, 2015 at 3:52 PM
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.
Moiz Nadir says: Reply

July 21, 2015 at 11:01 PM
Sir my need is 450000/- for our at registry, for this my parents in Law is giving
200000/- to her daughter as a gift. Sir what rules say abot tax liability

August 11, 2015 at 2:53 PM
Gifts from parents/lineal ascendants and descendants are not taxable.

Hence this amount of Rs 200,000 is totally tax free.
sundar says: Reply

July 22, 2015 at 10:13 PM
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
raj says: Reply

July 22, 2015 at 10:54 PM
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

August 11, 2015 at 2:35 PM
Gifts are taxed in the hands of the receiver. The relative who gives the gift
does not bear the brunt of taxes.

August 12, 2015 at 5:21 PM
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.
Tarun says: Reply

July 25, 2015 at 7:45 PM
If a receive a gift of 600000 from my grandfather(mothers father)

So is it taxable or not ?

August 11, 2015 at 2:18 PM
Any gift received from your relative is totally tax free according to law.
Hence the amount received from your grandfather is tax free.
August 11, 2015 at 4:57 PM
Gift from relatives are not taxable. Hence this gift is not taxable in your
hands.
Jaya says: Reply

July 25, 2015 at 8:00 PM
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.

August 11, 2015 at 4:56 PM
If this transaction is shown as a gift from father then it is completely tax

free. There will not be any tax on this gift from father.
Ram says: Reply

August 1, 2015 at 10:00 PM
Dear Sir,
1. Can a relative (relative as de ned 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
Vikram Bhatt says: Reply

August 7, 2015 at 5:48 PM
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 de nitions she is relative, but she is NRI.

August 12, 2015 at 5:14 PM
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 le a gift tax form to claim a gift tax exclusion.”
HARESH says: Reply
August 12, 2015 at 10:27 PM
My daughter & Son in law has purchased at when they are Indian citizen. Right now
they are Canadian citizen. Recently they sold at 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 at.
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.
ashish says: Reply

August 13, 2015 at 4:03 PM
How much money daughter can gift to her parents? is there any law for this?
Shiv says: Reply

August 13, 2015 at 11:03 PM
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 ling rental income as the
only income source which turns out to be zero tax ling. 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 les income tax returns regularly. And do I need to do any documentation
for this gift to my brother.
HARESH says: Reply

August 14, 2015 at 4:07 PM
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 pro t 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.
VINEET MALHOTRA says: Reply
August 15, 2015 at 12:22 PM
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
Ss says: Reply
August 15, 2015 at 1:30 PM
If an uncle, a resident of India, is the bene ciary 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 bene ciary? I believe nephew to uncle does not constitute being a relative?
S Ghosh says: Reply

August 17, 2015 at 1:26 AM
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 !!!
R. Singh says: Reply

August 17, 2015 at 11:51 PM
I am housewife and having no out side income. My husband is a regular income tax
payer & ling 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 xed deposit. for 10 lacs. as the xed
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.
Anurag says: Reply

August 20, 2015 at 12:57 AM
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?
rakesh says: Reply

August 21, 2015 at 3:55 PM
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
Dr Tariq says: Reply

August 23, 2015 at 2:38 PM
Is it mandatory to disclose the gifts received from close relatives while ling income
tax returns?
Mohd says: Reply

August 24, 2015 at 8:22 PM
My parents gifted me a huge amount (30 lakhs) . Is it mandatory to show gift

received from parents in ITR
anuj says: Reply

August 25, 2015 at 8:20 PM
my father giving 1100000 in cash is taxable?
Tarun Jain says: Reply

August 26, 2015 at 8:07 PM
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
ravi says: Reply

August 28, 2015 at 12:49 PM
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
Mahesh says: Reply

August 29, 2015 at 2:26 AM
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?

Amandeep Singh says: Reply
August 29, 2015 at 4:52 PM
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 pro ts in same
account. What is tax liability on all my pro ts?
Manoj says: Reply

August 30, 2015 at 9:59 AM
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)
Mohan says: Reply

August 31, 2015 at 5:28 PM
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 lled)
Mayur Shah says: Reply

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

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…
Krushik says: Reply

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 ?
Trapti Batra says: Reply

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
Nitin says: Reply

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 ve year back.
Is a gift deed on stamp paper required ? Can It be done today?
Regards,
Kiran says: Reply

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
Chandar says: Reply

September 20, 2015 at 9:53 AM
I want to gift Rs.10 lakhs by a duly executed gift deed to my wife from my retirement
bene ts 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.
Chandar says: Reply

Sir, I want to gift Rs.10 lakhs by a duly executed gift deed to my wife from my
retirement bene ts 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?
Ram says: Reply

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

If I received a money from my grandmother. Is it taxable r not ?
PS Sarma says: Reply

I am the rst 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).
Preeti Mirza says: Reply

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 at 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
SK Kulkarni says: Reply

I had 2 BHK at. IT was in joint name (self and my wife). Can I gift 50% of pro t to
my wife which she can invest further in mutual fund etc. Will that be taxable for me
or my wife
Madhavan Pillai says: Reply

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
Phogat says: Reply

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
PK Bhardwaj says: Reply

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.
Amal says: Reply

October 15, 2015 at 10:04 AM
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?
Akash Roy says: Reply

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 ?
b.kirubakar says: Reply

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
hardik kapadia says: Reply

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
– rstly 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
ABhishek says: Reply

I am a govt servant, i wnat to gift a at 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 di culty in may
o ce . As i am claiming Income tax rebate from the interest paid to bank in house
loan.
NAMDEV GAWDE says: Reply

Pl show me the calculation of Gift tax
rohit trikha says: Reply

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

my uncle (fathers brother)s son wants to gift me a commercial building and coffee
estate..is this taxable under Income act
yogi says: Reply
December 13, 2015 at 7:47 AM
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 at 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 ??
SUBHASH BHATTAD says: Reply

December 13, 2015 at 10:25 PM
Good Clari cation 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 ??
Joshi Kumar says: Reply

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.
s biswas says: Reply

My father want to buy a at in my name is it taxable to me ?
ashish says: Reply

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…?
Manoj says: Reply
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 ?
Nitesh says: Reply

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?
Vishal Jadhav says: Reply

January 13, 2016 at 12:12 PM
If i gifted some amount of money to my wife it is above 50 k i can take tax bene t if
yes how can i take the bene t
Mattew says: Reply

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.
Arya says: Reply

January 15, 2016 at 10:41 PM
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
murali says: Reply

January 16, 2016 at 10:04 AM
Can gift of immovable b made by simple letter or registered deed required ?

SURESH says: Reply
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
.
Anup Bera says: Reply

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

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 bene t of gift tax
2. does she get the tax bene t of income tax for home loan?
She has other income also
Hemanth says: Reply

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
Rajan says: Reply

February 8, 2016 at 3:28 PM
Can i receive cash of rs. 30 lakh from my mother without paying any Tax. If i can
then is there any limit.
Rahul verma says: Reply

Hi
Can I get a gift of rupees 20 lacs on marriage from faather in laws . Ana is it tax
free?
Rajesh says: Reply
What are the prevailing rates?
R D Saini says: Reply

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
manoj says: Reply

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
AJ says: Reply
ok
rohit says: Reply

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 le an IT return. Once this RD matures, this money is used to pay loan
gor my home. Is this all ne or there is some tax liability on me.
Thanks
johnmaliekal says: Reply

March 4, 2016 at 6:07 PM
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

March 16, 2016 at 5:46 PM
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.
Samel says: Reply

March 8, 2016 at 1:22 PM
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.
Shailaja says: Reply

March 10, 2016 at 4:36 PM
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.

March 29, 2016 at 2:36 PM
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 de nition for the relative.
2) The answer to this is covered in the above answer.
Nisy says: Reply

March 11, 2016 at 5:47 AM
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???

March 29, 2016 at 2:26 PM
Yes, you can pay the instalments even after gifting him the house.
BJ says: Reply
March 20, 2016 at 10:22 AM
How do you le 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

March 28, 2016 at 2:08 PM
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.
Sanjeev Panwar says: Reply

March 31, 2016 at 10:04 AM
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 con rm, 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
K.Subramanian says: Reply

March 31, 2016 at 3:26 PM
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 clari cation on the above points.
With regards,
K.Subramanian
Anusha says: Reply

April 1, 2016 at 8:55 PM
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
Lalim says: Reply

April 19, 2016 at 3:05 PM
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
de ned 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?
Suyash patil says: Reply
May 7, 2016 at 11:28 PM
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

May 9, 2016 at 1:35 PM
Yes, if you receive a gift from cousin, it will be taxable because the ‘gift
received from cousin’ does not come under the de nition of ‘gift received
from relative’. So it will be taxable.
R K Agrawal says: Reply

June 3, 2016 at 10:13 PM
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.
thirukumar says: Reply

June 6, 2016 at 11:30 AM
My mother in law is a widow and i have given lumsum of money and she deposited
in FD in bank.
Pls con rm whether i have to pay gift tax
T Singh says: Reply

June 9, 2016 at 5:52 PM
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
Rahul says: Reply

June 21, 2016 at 10:33 PM
My dad bought at in last year and now he wants to transfer that at to my name.
My question is, does this transaction is taxable?
Thanks in advance
June 23, 2016 at 3:57 PM
Dear Rahul,
It is exempt from tax.

July 14, 2016 at 11:25 AM
Dear Rahul,
The transfer of property from your father to you will be exempt from tax.
Raghuveer says: Reply

June 29, 2016 at 2:59 PM
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???
Raghuveer says: Reply

June 29, 2016 at 3:02 PM
The land is registered in name of my wife
S.Mohan says: Reply

June 30, 2016 at 8:34 PM
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.
S.Mohan says: Reply

June 30, 2016 at 8:37 PM
Thank you for not publishing my email addresss and waiting for reply
arvind says: Reply

July 2, 2016 at 12:48 AM
hi
does the receiver of gift have to le 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
Vinay says: Reply

July 2, 2016 at 12:33 PM
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?
Sharad Dhonde says: Reply

July 2, 2016 at 6:09 PM
My wife want to gift her immovable property to my sister .will my sister have to pay
gift tax.?

July 14, 2016 at 11:19 AM
Dear Sharad,
She will be exempt from paying any tax on the gift received from your
wife.
raj says: Reply

July 3, 2016 at 4:18 PM
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)…
Mukul Soni says: Reply

July 6, 2016 at 10:37 PM
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 de nition 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 le 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 clari cation.
Mukul
ravi says: Reply

July 10, 2016 at 3:45 PM
i want gift my daughter some liste d company share .is it tax expmted on sale
valued 5lac
Deepankar Chaudhary says: Reply

July 26, 2016 at 11:13 AM
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

July 26, 2016 at 11:52 AM
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.
Alok Srivastava says: Reply

July 27, 2016 at 8:25 AM
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 at 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 le income tax for the AY 2015-16 ?
Q2. If so then in Which ITR ?
Q2. How could she obtain exemption on tax ?
– regards
sunita says: Reply
July 28, 2016 at 7:22 PM
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: Reply

July 30, 2016 at 2:25 PM
Sir plz reply
sunita says: Reply

August 13, 2016 at 11:34 PM
Sir kindly reply

August 16, 2016 at 4:42 PM
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.
Preetam says: Reply

August 1, 2016 at 10:10 AM
Bought at 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
rst at in 2011 April( registration in April 2011 but payment for at 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 at sale exempt under 54F?
Les says: Reply

August 2, 2016 at 11:33 AM
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.
N says: Reply
August 6, 2016 at 10:51 PM
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.
KAG says: Reply

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
suresh says: Reply

August 14, 2016 at 2:32 PM
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
Siddharth Sharma says: Reply

August 18, 2016 at 10:19 PM
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 rst 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 rst 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
Shekar says: Reply

August 24, 2016 at 9:20 AM
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?
tinku says: Reply

August 26, 2016 at 12:08 PM
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.
Hemant says: Reply

August 29, 2016 at 2:30 PM
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… 😀

nare says: Reply
August 30, 2016 at 9:54 PM
i am citizen of u k i want to gift my sister without any occasion from my huf account
RS Singh says: Reply

My mother is selling a property and depositing the money in a long term capital gain
account.
If i buy a at, 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 at 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

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.

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
Raj Patel says: Reply
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.

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
Jignesh bagadia says: Reply

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

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.
Parimala says: Reply

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

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.
Hanumanth says: Reply

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,
ARNAB CHANDRA says: Reply

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
SATHISH KUMAR says: Reply

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.
vijay arora says: Reply

gift received on occasion of marriage from non resident in foreign currency.Is there
any limit in FEMA ACT???
Ravi says: Reply
Hello Sir,
Can a non relative give a gift, say 10 lakhs. What will be the tax payable on this
amount. Thanks.
BHAVYA GUPTA says: Reply

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
Amit says: Reply

Sir,
Its regarding my uncle ats,
My uncle owns 2 ats 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 at to both of us and Alibaug at 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 ats
Pls help
SANJEEV SHARMA says: Reply

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

IS TAXABLE FOR ME???
Barnali says: Reply

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!
meena jain says: Reply

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 rm 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 nancial 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.
AK MALHOTRA says: Reply

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 O cer of the rank of an Addl.
Secy and for last 5 Years working as Consultant with a Pvt Firm. You are requested
to con rm my presumption regarding non-tax ability of the gift as described

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.
samir says: Reply

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
Anjul says: Reply

Dear Sir,
I celebrated my son’s rst 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.
Suresh Inti says: Reply

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.
N K Agawral says: Reply

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.
Rajesh says: Reply

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
Ritesh says: Reply

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 lling tax return this year for the rst time. Do I have to show
this deposit as my income and pay taxes, as only 50K is tax exempt?
NITA KAPUR says: Reply
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.
Phanindra ganti says: Reply

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) ?
Satish says: Reply

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
Raja says: Reply

I live with my mother, unmarried sister along with my wife and a child in a at that is
20 years old. The at 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 rst? Because, she plans to buy another at 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.
Ranga says: Reply

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.
Dr Prabhat Tandon says: Reply

January 11, 2017 at 7:27 AM
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 ?
Raj says: Reply

January 14, 2017 at 12:00 AM
Hi,
I have following query
I plan to purchase a at 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 at 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 at
Regards,
Raj
Alok Mishra says: Reply

January 14, 2017 at 10:31 AM
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.
Tenzin says: Reply

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

Thanks for sharing such a great blog. I nd this on google thats is very informative
for me.
Rishi says: Reply

My mother want to help me buy a at. 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.
virendra chawla says: Reply

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: Reply

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.
Manish says: Reply

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 ….
Nitasha says: Reply

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 ?
Aditya says: Reply

Hi Aditya here. I earn 15k , 20 k per month. But My mother has gifted me some
money which I invested in xed 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 ll IT returns for my FDs? Please
Suggest ..I have never lled IT returns before.. So please explain in layman terms..
Thanks In advance
rajendra says: Reply

i had purchased at in 1995 in thane in my and wifes name jointly and paid relevant
stamp duty bt didnt register it out of negiligence . the relevant at consideration was
fully paid by me and in my soceity by submiting sellers document and buyers
dociment i got sharecerti cate in joint names.now my lawyer says since last two
years old registerations are closed by maharastra govt.the said at consideration
bought i have showed in my le 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 veri cation ny govt the said property will be shown as bought in 2017 or
1995
further if i sell this at 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
R.K.Gupta says: Reply

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.
Sandip says: Reply

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.
Agarwal says: Reply

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 ?
Gurdeep Singh says: Reply

March 5, 2017 at 9:46 AM
an uncle of my wife said he had given rs 500000/- rs ve 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
AB says: Reply
March 6, 2017 at 6:57 PM
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 beni ts 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
Minakshi Kumar says: Reply

March 7, 2017 at 9:10 PM
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 le
Income Tax Return in India, even though he has no taxable income?
Satish says: Reply

March 8, 2017 at 11:50 AM
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.
rajesh says: Reply

March 13, 2017 at 3:10 PM
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 oor) 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 at valued at Rs.25 lacs.
3. How is the tax treatment of the at 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 bene t?
Rajnish Mishra says: Reply

March 17, 2017 at 1:15 PM
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
shaukat alam says: Reply

March 27, 2017 at 5:16 PM
I am a govt. employee ling 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?
Rashmi Gangat says: Reply

March 29, 2017 at 2:22 PM
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 ?

April 4, 2017 at 3:07 PM
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.
Rashmi Gangar says: Reply

March 29, 2017 at 2:24 PM
Can a Gifted Property be again gifted within 1 month ? Are there any tax
consequences?

April 4, 2017 at 2:57 PM
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.
Ankit says: Reply
April 3, 2017 at 2:38 PM
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 rst 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

April 4, 2017 at 2:52 PM
Any pro t 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 speci ed
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: Reply

April 12, 2017 at 4:03 PM
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
AU Siddiqui says: Reply

April 7, 2017 at 10:35 AM
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
Seshukumar says: Reply

April 7, 2017 at 4:59 PM
Dear Sir
My father in law wants to gift a land worth 4.5 Lakhs, Whats the gift deed tax he
need to pay
jayshree nimbekar says: Reply

I want to gift 900000rs to my sister in law in this nancial year will she or l
will have to pay tax on it.

No, You won’ t have to pay taxes as it falls under the covered
relatives (i.e. Brother or sister of your spouse) . But you should
be able to explain the source of such gift to your tax paid
savings.
Seshukumar says: Reply

April 7, 2017 at 5:00 PM
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
Nikhil says: Reply

April 7, 2017 at 6:22 PM
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 le income Tax return.
Someone said to me that clubbing provision will apply. Please help to clarify.
Thanks
LOVVE YELAPATI says: Reply
April 8, 2017 at 7:30 AM
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.
pankaj says: Reply

April 25, 2017 at 2:01 PM
No. its purely tax free income for you. but its should be documented.

August 22, 2017 at 7:12 PM
No. The gift is fully exempt from tax but you should maintain a gift deed
for the same.
LOVVE YELAPATI says: Reply

April 11, 2017 at 5:59 PM
please answer sir
shyam saraf says: Reply

April 12, 2017 at 2:32 PM
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 ling
Vishwas Gupta says: Reply

April 17, 2017 at 9:27 PM
Has there been any changes in the gifting rules as per the new nance bill
introduced in 2017? Speci cally, can parents still gift in access of Rs 50000/- to their
children who are major?
mirnance says: Reply

April 18, 2017 at 8:19 PM
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
Rama says: Reply
April 28, 2017 at 12:22 AM
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
pro t in my income?
Thanks,
RK
pankaj says: Reply

April 29, 2017 at 12:28 PM
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
Rama says: Reply

May 17, 2017 at 12:57 AM
Is this gift deed needs to be registered or it is ok to have it on

Rs50 or Rs100 stamp paper?
Thanks,
RK
Ashok Puri says: Reply

April 30, 2017 at 12:27 PM
Sir,
Can gift Rs. 5 lac to my minor grandson (daughter’s son) in the shape of F.D. from
my pensionery bene ts. Is this amount taxable at any stage and interest accrued
thereon.
Ruban says: Reply

May 2, 2017 at 9:58 AM
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?
Ruban says: Reply

May 5, 2017 at 11:20 AM
Hi , Can i get some reply?

D.R.Gunnala says: Reply
May 9, 2017 at 9:17 AM
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
Jignesh says: Reply

May 9, 2017 at 6:05 PM
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 ling. I’m lling 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 lling.
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
lling 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???
Ramesh Kumar says: Reply

May 10, 2017 at 2:15 AM
The main article mentions Lineal Descendants, Isn’t Lineal Ascendants also
included as per the Act ?
Prakash says: Reply

May 13, 2017 at 12:04 PM
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.
Prakash says: Reply

May 13, 2017 at 12:07 PM
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?
Kumar says: Reply
May 18, 2017 at 11:24 PM
If my friend sends me 3 crore Indian rupees from US as a wedding gift. Would it be

taxable ?
lalit tyagi says: Reply

May 19, 2017 at 1:41 PM
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..
lalit tyagi says: Reply

May 21, 2017 at 1:29 PM
please sir..
Mahendra says: Reply

August 31, 2017 at 11:35 PM
If I give 2 lacs to my father who has not taxable income .if the 2 lacs will
be used in share trading or other investment then the pro t loss will be
taxable as per whose slabe my or my father?
karun says: Reply

May 22, 2017 at 4:17 PM
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?
Bhaskar says: Reply

June 13, 2017 at 7:41 AM
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?
juzerbanswadi says: Reply

June 15, 2017 at 12:33 AM
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??
Pankai says: Reply

June 16, 2017 at 1:20 PM
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.
RAMESH CHANDRA SOMANI says: Reply

June 23, 2017 at 4:12 PM
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
Prabal Jindal says: Reply

June 30, 2017 at 9:40 PM
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?
Kevin says: Reply

July 2, 2017 at 5:00 PM
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.

July 3, 2017 at 4:38 PM
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.
July 3, 2017 at 5:46 PM
Hi Alok,
Nahi, uski koi limit nahi hai, lekin gift kehlane ke liye ‘Gift Deed’ honi
chahiye. Is par aapko koi tax bhi nahi lagega.
Asha hai aap is jawab se santusht honge.
Thanks

July 3, 2017 at 10:57 PM
Many-many thanks.sir I have fully satis ed.thanks once again.

July 3, 2017 at 11:03 PM
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 ?
Vikas Sharma says: Reply

July 4, 2017 at 12:26 PM
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
rahul sharma says: Reply

July 6, 2017 at 9:35 PM
my father gave some amount in cheque as gift to me. the same was deposited in
bank as a xed deposit. bank has deducted TDS on the interest on the xed deposit.
how do i claim the bene t in income tax return and avail rebate on the TDS
deducted?
rahul sharma says: Reply

July 9, 2017 at 10:05 AM
I HAVENT GOT REPLY FROM YR END. PL EXPEDITE

Akhil Vats says: Reply
July 10, 2017 at 3:30 AM
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 .
Tamilpandi says: Reply

July 11, 2017 at 6:35 PM
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?
aman kapila says: Reply

July 12, 2017 at 5:08 AM
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
Puneet says: Reply

July 12, 2017 at 5:15 PM
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..
Jignesh says: Reply

July 13, 2017 at 3:37 PM
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 ling. I’m lling 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 lling.
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
lling 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???

July 13, 2017 at 10:26 PM
3rd july2017 ko maine question kiya tha sir aj tak answer nhi mila . please
ans.dijiye.thanks.
amit says: Reply

July 20, 2017 at 5:53 PM
gift deed require in case of cash gift from father to son.

Yes. If you want to claim tax exemption on the amount it is necessary

that the gift deed is executed.
Sandeep says: Reply

July 23, 2017 at 4:33 PM
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.

The gift given to a relative is fully exempt from tax, therefore you or your
brother will not have to pay any tax on the amount.
G singh says: Reply

July 24, 2017 at 6:58 AM
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 led income tax returns showing the entire amount rs. 1300000 as my
consideration as my mother has nil income and dont le returns….will there be any
any problm in future?? Please guide
Dr G V Niranjan says: Reply

July 24, 2017 at 2:22 PM
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 ling 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.
Raj Bhaskar says: Reply

July 25, 2017 at 3:34 AM
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

No. The amount is not taxable. You will need a gift deed to claim
exemption in this case. Please check the blog for further details
regarding gift deed.
Sunny says: Reply

July 29, 2017 at 1:41 PM
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 le returns

July 29, 2017 at 2:54 PM
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
July 31, 2017 at 5:46 PM
Sir kya hua mere question ka ans dijiye dhanyavad.

Ji haan, isme bhi lockin period hota hai 3 years ka aur after lockin period
aap is amount ko sirf property kharidne ya construction ke kaam mein
use kar sakte hain. Bank me deposit karne ki koi limit nahin hoti.

August 10, 2017 at 8:47 PM
Bahut-bahut dhanyavad apka mera margadarshan karne ke

liye.
Kish says: Reply

July 30, 2017 at 12:27 AM
in ITR2 Form where should one declare the marriage gift amount when ling return?

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.
vabz says: Reply

July 30, 2017 at 2:51 AM
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,

No, you are not liable to pay tax on the same amount. However, you need
to show this income in your return.
sameer says: Reply

August 1, 2017 at 12:15 PM
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?

Yes, the Income Tax Department may enquire about the source of this
income. You are liable to pay tax over this amount.
Subramaniyan says: Reply

Dear Niteesh Sir,
I have a query. If a friend of mine were to gift me a at worth 30 lacs, what would be
my tax liability? Would it be 30% of the at value which would amount to 9 lacs or
would my liability be the Stamp value of the at 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 at, what would be the
exact tax liability?
Please respond.
Thanks in advance.
S. Subramaniyan
Rajni Rastogi says: Reply

Hi, I am a salaried individual currently in the 30% tax bracket. My mother in law is a
retired school teacher, with annual income signi cantly 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?

August 4, 2017 at 10:10 PM
Sir please 29 july wale mere question ka ans dijiye .dhanyvad

Krishna says: Reply
August 5, 2017 at 10:29 PM
Hi. I will receive Rs 10 lakhs from my grandmother to buy a at. 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.

August 8, 2017 at 11:38 AM
You will have to get the amount and occasion of the gift documented in
the form of gift deed. Gift deed is the only document you will require in
this case.
Alok Kala says: Reply

August 8, 2017 at 10:26 PM
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
Rahul says: Reply

August 14, 2017 at 10:36 AM
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
o cer 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 con rm 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.
Vinayak says: Reply

August 14, 2017 at 3:13 PM
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.??
wahid says: Reply

August 17, 2017 at 9:20 AM
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?

August 18, 2017 at 12:10 PM
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.
JK says: Reply
August 18, 2017 at 12:31 AM
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?
Rajesh says: Reply

August 18, 2017 at 5:22 PM
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 ?
sant kumar kasera says: Reply

August 24, 2017 at 9:31 AM
my sister in law gifted me rs.850000/ in cash it is taxable?
Sourabh says: Reply

August 30, 2017 at 1:23 PM
I Purchased a house jointly with my mother. 60% was nanced 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 ling taxes or would this be considered as a gift
from son which is non taxable?
Neelesh says: Reply

August 31, 2017 at 1:55 PM
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 ling proof
submission.
Thanks
Neelesh
Sachin J says: Reply

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
Kapil says: Reply

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.
lath says: Reply

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
No, the gift will not be taxable.
Shiwani Sharma says: Reply

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!
KOUSHIK DAS says: Reply

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.
SAFIQUE SARDAR says: Reply

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.
Col AD Anand says: Reply

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 ling 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.
sharda kotwani says: Reply

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

Please nd 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 speci ed in the income
tax rules
tinku says: Reply

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.
Sunaina says: Reply

Hi
My father wants to sell his property in Delhi. Out of the money received through sale,
he wants purchase a at for himself and gift one at 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 ats purchased and gifted
to them by my father?
अिभम ु िसंह says: Reply

अगर िस र को brother की तरफ से शादी मे िग दी जाए तो ा िलिमट होगी ।

कैश दे ने की ?
िपता िकतने कैश मे िग दे सकता है ?
MANISH says: Reply
My father wants to give me Rs 300000 from his income. is it taxable to him as well
as me?

As Rs 300000 is a part of your father’s income it will be taxable for him.

You won’t have to pay tax as it is a gift to you.
Rohit says: Reply

If my father in law wants to gift 50L to his Daughter (my wife) to purchase a house
for residential purpose would it trigger any gift tax or capital gain tax when we sell
it?
Do we need to create now any gift deed and get it registered if the gift is in cash?
Rajaram Viswanathan says: Reply

I want to gift my mother a sum of 40L which she will invest in FD and earn an
income of more than 2.5L. So I understand she has to pay income tax as per
slab.The question here is if she wants to give back say 42.5L back to me after an
year, is it taxable to me or my mother that time? Please clarify.
Regards,
Rajaram V
A VENKATESHWAR says: Reply

My cousin sister bought land registered for Rs 60,00,000/- from her savings /
income and wants to donate it to a non pro t religious society / veda pathashala for
teaching scriptures to the youth . Which is the best way to go about it without either
party being taxed ? how will they have to show it in their IT statements. What are the
basic documents in the transaction?
Rudranath Bhattacharya says: Reply

I am a salaried person. My father is a pensioner of age 89 years. My father does not

possess any ATM Card of his own accounts. I used to withdraw cash from my bank
accounts through ATM and give it to my father for monthly expenses. My father
pays me the amount back through cheques.
Am I liable to pay Tax for receiving money from my father?
ratansingh says: Reply

My quarry is…
In my wedding;
My father in law gifted car to my father
Is it taxable??
Pls rply….
Waiting
SAFIQUE SARDAR says: Reply

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.

If you are gifting an immovable property to anybody other than a covered

relative then you will have to pay capital gain tax calculated based on the
fair market value of the property. Further for the receiver of the property
the difference between the fair market value of the property and the
consideration paid by him for acquisition of such property will be
considered as income from other sources and will be taxes accordingly
as per his slab rate.
Abhishek Dhurvey says: Reply

Dear Sir,
if my foreign friend planning to lay his deposit to me in my Indian account, its still in
his wish not sure. then suppose if he will transfer around 50000000/- then how
much I have to pay fee to income tax. apart of this any else process are there for
getting it. please let me guide.

If you receive any gift from a non-covered relative, the value of which
exceeds Rs. 50,000 in the nancial year it is chargeable to tax as per the
tax slab applicable in your case. But in case you are also a non resident
for the nancial year in which you are receiving the gift then you may not
have to pay any tax in India.
vasudev hingorani says: Reply

October 23, 2017 at 11:29 PM
i have gifted property to my son in the year 2011 when he was 18 year old and did
the formalities of preparing gift deed and got it stamp duty registration
application paid in the year 2011 itself as per norms and got it registered.
question i have not kept added in rst IT Return done rst time in the year 16-17
return led is it must show a gift deed in IT return and know
we planning to sell the property does it attract any tax as this is a gift deed done in
2011
Bhairab Kumar says: Reply

Dear Sir,
If I transfer money to my wife’s account as a gift. Can I get rebate on that particular
amount in income tax apart from 80C. My younger brother is in study and his all
expenses is bareed by me. Can I get rebate in my income tax. Please suggest.

There is no refund or savings in transferring money to your wife’s

account. Only your wife bene ts, as she will not be taxed on the money
received, But you will still have to pay taxes on the income she earns out
of the gifted amount. As per the current law, there are no deductions for
paying for your brother’s education, only spouse and children (2 max)
g.rajan says: Reply

can my NRI son in law gift me 10lakhs from his NRO account

Yes, he can and it will not attract any taxes as it falls under gift exempt
laws.
RajCA says: Reply

Hello sir,
I have quick questions: I am a US citizen and travelling to India. My father-in-law
want to give a gift to her daughter but she is not able to travel. As I am travelling to
India, can I (son in-law) take the gift in my name? Will there be any tax liability? Do I
need a gift deed for the amount? Just in case if there is any inquiry, I can provide the
gift deed. Do I need a gift deed when I am transferring gift money from NRO to NRE
account?
Also, will there be any tax on gift received by a son-in-law from father or if a
daughter in-law get it from mother?
Thanks
Raj

Yes, you can take the gift in your name and there will be no tax liability as
per the covered relatives. Getting a gift deed is always a wise step, to
avoid any unforeseen hassles in the future. Also, the transfer should be
irreversible. Your Bank may ask you to submit self declaration in Form
15CA & a CA certi cate in Form 15CB for transferring the money from
NRO to NRE account.
SANKAR NATH MAULIK says: Reply

October 27, 2017 at 11:04 AM
I want to gift Rs.10 lakhs to my unmarried daughter which will be invested by her for
a Pension Plan with LIC or for opening FD with Bank. She does not have any other
income.
• Will there be any gift tax.
• Will the income arising from the FD/Annuity be clubbed to my income?.
• Will she le a tax return if her income from all sources is within taxable limit.
• Is it necessary to make a Gift Deed or how to make the gift to avoid future
complication

At present there is no inheritance or gift tax in India when it is between

covered relatives. Therefore neither you nor your daughter will have to
pay any tax for your gift of Rs 10 lakh. Any income which accrues to her
from her FD or other savings will be taxable in her own hand if she is a
major (above 18) for that nancial year, else it will be clubbed in the
hands of the parent earning the higher income. She may not have to le
taxes if it is within the taxable limit of under 2.5 lakhs per annum and
there is no refund to be claimed on account of TDS. To avoid TDS she can
le Form 15G with the bank. But ling a tax return can helpful when
applying for loans or obtaining your visa for travelling abroad. Finally,
while a gift deed is not necessary when a parent gifts a child, it is good
practice to follow in order to avoid any unforeseen complications. Also to
keep track of the transaction it is advisable to transfer the money by
cheque or electronic mode.
lath says: Reply

I am NRI , need buy property in india for me and wife – what will be the tax or GST ?
DEEPAK GUPTA says: Reply

Hii my name is Deepak Gupta and, I have created a HUF, in that my father is Karta
and me and and my mother is co-parecner. How i create income in that HUF. Please
provide suitable opinion.

Though this will require good amount of deliberation based on the facts
of each case, a HUF can earn income through below sources:
1. Ancestral property/Funds
2. Third party gifts – clearly stating it is for the HUF
3. Gifts received under “will”
4. Rental income of ancestral property
Akshay says: Reply

October 29, 2017 at 10:50 PM
As per the list of relatives mentioned above, one can receive tax free gift from
Father’s brother but what about the other way.
Suppose I had to give my uncle a few lakhs in a year, is that taxable??

The rules allow for an uncle to gift a nephew or niece, but not vice-versa.
So, if you were to gift your uncle a few lakhs, it would not be exempt from
taxes.
Prithwis Kumar Goswami says: Reply

I am 75 yrs old ling IT Return.My Taxable Income assessed to be NIL nally for my
Income from Other sources only.My wife also les ITR.She is a rertired employee of
Postal dept. She wants to make a Gift of certain amount of money
to me. I wish to know if I be considered as my wife’s relative ,being a spouse !
Someone told , Gift tax is exempted only when executed between blood related
relatives. My wife and me are not blood related,so should we not be considered
as Relative ,so as to avail the Gift Tax Exemption. Please advise.

She can gift to you as a spouse, as it is under covered relatives of gift tax
law. But if you invest the amount somewhere and earn some income out
of it, that income will be clubbed in her taxable income and she will be
required to pay taxes on it.
DEEPAK SHARMA says: Reply

If I will gift my father Rs.50000/- then can I declare in my income to save tax on it?
Pls advice on this
Visista says: Reply

My friend’s husband used to work in a private educational institution. He met with an

accident and died on 06-may-2014. After his death, his colleagues came forward
and contributed some amount from their salary and put together Rs. 2,35000/-
deposited into my friend’s bank account. Later on my friend invested in xed
deposit. Her other income for that particular FY was not more than 1 lakh. Due to
lack of awareness of Income tax returns, she did not le Income tax returns for that
FY 2014-15(AY 2015-16). She started ling ITR from AY 2017-18. Now she received
a notice from IT department saying that why did not you le income tax returns for
AY 2015-16. Your time deposits exceeding 2,00,000/- in AY 2015-16 under CIB-403.
Whether this 2,35,000/- chargeable to tax? Please clarify.
Roy says: Reply

I am a taxpayer. I wanted to give away Rs.5 lakhs to my daughter who is a major to

do investing and trading in shares after her post graduation. Whether the gift is
clubbed with my income and taxed?? If she makes any pro ts from the share trading
activity, whether I need to pay short term capital gax thereon?
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November 2, 2017 September 25, 2017 August 3, 2017

S Ghosh says: Reply

Gift by mother in law to daughter in law is not taxable as it ts in the

Naween Arya says: Reply

Can a father-in-law gift his house to his daughter-in-law

Tejas lakhani says: Reply

What is the de nition of lineal descendant? Does my wife take

Sanjeev Shrivastava says: Reply

Sir I have two qustions pls help me out –

Q2 My Parents want to gift my children is it taxable

rahul bhatta says: Reply

HRBlockIndia says: Reply

Any gift received on the occasion of the marriage is tax exempt, be it

sunny says: Reply

sandip Magar says: Reply

Can father in law transfer 50 L to his Daughter in law’s A/c. (

ajay says: Reply

above rs.50000 received would be declared as your income

V Srikantan says: Reply

HRBlockIndia says: Reply

HRBlockIndia says: Reply

Kamlesh says: Reply

If my parents transfer money to my account to help me reduce my loan, will this be

HRBlockIndia says: Reply

vidyadhar says: Reply

i want to give hand loam or gift to my daughter through son-in-law

Priyanka says: Reply

Priyanka says: Reply

Wanted to know more about reconveyance deed.. and if its possible in

HRBlockIndia says: Reply

Gift received from brother or sister of parents is not taxable as

Reconveyance deed is a deed executed to transfer the title

Sahi says: Reply

sunny says: Reply

gifting 1 crore at marriage point of time is okay I believe

Manju M V says: Reply

P S BOSE says: Reply

angel9405 says: Reply

Rajeev Pandey says: Reply

Manu says: Reply

Ashok says: Reply

Ajay kanoi says: Reply

Ram says: Reply

Ravi says: Reply

I purchased an apartment recently and got it registered in my name (and I already

Shashank says: Reply

1)Whether Surrender value of ULIP is taxable, if not is it necessary to declare in IT

Thanking you in anticipation.

BEENA SHARMA says: Reply

Prakash V says: Reply

HRBlockIndia says: Reply

Sanjeev says: Reply

I Think you are wrong. FD gifted by Husband to wife is tax free,