Income Tax on Gifts from NRIs and Relatives in India

by Guest Blogger on November 21, 2012

in Tax

This article is written by Aashish Ramchand, a Chartered Accountant by profession. Aashish is the co-founder of makemyreturns.com. He also has completed his CFA Level I (American) and is very passionate about writing articles on taxes and tax advisory. He can be reached at connect@makemyreturns.com

Generally, gifts are not regarded as Income chargeable to tax. However by virtue of Section 56(2) any sum of money exceeding Rs. 50000 received without consideration by an individual or an HUF from any person is chargeable to tax as income under other sources subject to exclusions as below:

  1. Receipts on occasion of marriage of the individual
  2. Receipts under a will or inheritance
  3. Receipts received from a relative.

Since 1/10/2009, Section 56(2) has been amended and the scope of gifts and will include even immovable properties or any other property besides sums of money under its ambit.

Gifts that are not taxable at all are those that are received from relatives. Relatives are defined by the following relationships of the individual:

  1. Parents
  2. Parents siblings and their spouse
  3. Siblings
  4. Spouse of siblings
  5. Daughter and son
  6. Spouse of daughter and son
  7. Spouse
  8. Spouse’s parents
  9. Spouse’s siblings and their respective spouse.

Even NRIs are covered as long as they fall in the category of relatives. Therefore an individual Indian resident can receive a tax free gift from an NRI as long as he/she is that individuals relative. Any amount can be received as a gift from a relative. Also the purpose for which the gift is received from a relative is inconsequential as it is completely tax free. Thus a gift received can be used for any purpose ranging from purchasing shares to buying property to even simply keeping it with the bank.

Note on gifting on immovable properties

There is a valuation aspect involved in gifting of immovable properties:-

  1. If the property is gifted without any consideration then if the stamp duty value exceeds Rs. 50000/-, stamp duty value will be taken
  2. If the property is gifted for a consideration, then the actual value of the property will be taken

In case of other properties:

  1. If gifted without consideration and fair market value exceeds 50000, then the fair market value will be taken as the final value
  2. If gifted for a consideration and the FMV less consideration is greater than 50000, then the FMV less consideration amount will be taken as the value of the gift.

As mentioned earlier NRIs can also give gifts to resident Indians. Therefore, It is important to understand the meaning of an NRI as per the IT act.

An individual will be treated as a non resident in India in any previous year if he fulfils any of the following two conditions:

  1. he/she is NOT in India in that year for period or periods amounting in all to 182 days or more, or
  2. Having within the four years preceding that year NOT been in India for a period or periods amounting in all to 365 days or more, and has NOT been in India for 60 days or more in that year.

{ 371 comments… read them below or add one }

Manikaran Singal November 22, 2012 at 10:58 AM

Just to add , Gift tax provisions has to be read in conjunction with the clubbing provisions which are detailed u/s 60-64 of income tax act 1961. These sections deal with the cases where tax payers make an attempt to reduce the tax liability by transferring / gifting their assets in favour of family members or by arranging their sources of income in such a manner that tax incidence falls on others, but in actual the benefit of income enjoyed by them. one needs a proper tax planning at every life stage by understanding tax provisions simultaneously. I’ve written a series of articles on tax planning at different life stages, hope it benefit the readers http://goodmoneying.com/tax-planning-2/tax-planning-tips-for-married-couple-with-kids.
Even one article on FPGI by me also throws light on this issue http://www.fpgindia.org/2012/11/spreading-the-income-golden-rule-to-save-tax.html

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Manshu November 22, 2012 at 9:34 PM

Thanks for the comments and links Mani. I might make a small post out of this referring to your articles.

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sameer November 22, 2012 at 8:36 PM

thanks for the article…especially the list of relatives…

1) If My dad gifts me a certain amount, then he get tax emeption on the gift amount ??

2) Whts the upper limit for cash gifts? do we need to preserve the gift envelopes )R need to disclose the person who has gifted us in case the taxman asks for??

3) Can my first cousin be treated as a blood relative for Gift ( son of my dad’s real elder brother)

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Manshu November 22, 2012 at 9:31 PM

Sameer, here are the answers to the best of my knowledge.

1. When you get a certain gift, that’s tax free for you but doesn’t make it tax free for the person who gifted it to you. So for your dad the money is still taxable if he hasn’t already paid tax on that.

2. Rs. 50,000 when it’s not from one of the relatives listed in the post, and there’s no upper limit as far as I understand when the gift is from a relative.

3. No.

Could Mani or Aashish please look at my responses and verify them as well? Thanks!

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Manikaran Singal November 23, 2012 at 11:45 AM

@ Sameer
1. Whatever you recieve from your dad will be tax free in your hand . There’s no question of recieving any tax exemption by your father. So manshu has replied it correctly.

2. Manshu is right here as well. As far as documentation is concerned, one may take a letter from the person giving gift stating the amount and reason (which can be love and affection). This letter should also state the Pan no. of the concerned giver.

3.No. but the gift given by your dad’s real elder brother will be tax free.

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sameer November 23, 2012 at 8:52 PM

Thanks Manshu & Manikaran for ur replies…

When one gets shares as gift or via a WILL, what are its taxation implications?? And does the beneficiary need to hold it for 1 year to avail of long term capital gain tax exemption in case he wishes to sell any??

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Manshu November 23, 2012 at 11:34 PM

I’m not sure how the question on getting shares as gift is different from what you have already asked? Can you elaborate that please?

I don’t know how the capital gains is calculated in this case. Sorry.

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Manikaran Singal November 24, 2012 at 11:29 AM

Sameer in case of shares recieved through WILL or inheritance the actual purchase date will be counted to calculate the Capital gain .

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Manikaran Singal November 24, 2012 at 11:30 AM

also there’s no Inheritance tax as of now in India. But PC is going to have discussion in this area too.

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Manshu November 24, 2012 at 9:58 PM

Thanks Mani!

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Manshu November 23, 2012 at 11:35 PM

Thanks Mani – quite an interesting point about the dad’s elder brother, I didn’t know that.

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Raja November 23, 2012 at 3:23 PM

Ah there it is! I was referring to this in my earlier comment on the NRI investment into direct equities.
So, tying up the 2 posts, a nri can gift to his parents and invest in the market through them, and transfer it back to his name once he get’s back to India.
of course the taxation on the gains from investing needs to be taken care by parents.

Regards

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Manshu November 23, 2012 at 11:34 PM

You’re exactly right Raja, and this post was actually triggered by your comment only!

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Raja November 24, 2012 at 7:48 AM

Super! Now i don’t need to visit a tax expert 🙂 Thanks !

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Manshu November 24, 2012 at 10:02 PM

Not for this at least 🙂

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Income Tax December 29, 2012 at 12:55 PM

Thanks for the very useful ariticle especially list of people from whom one can receive gifts tax free. One question, regarding gifting of immovable properties, you have said that “If the property is gifted for a consideration, then the actual value of the property will be taken” can you please elaborate more on this? when you say property gifted without any consideration and gifted for a consideration what exactly does it mean??

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Manshu December 30, 2012 at 7:20 PM

Gifted for a consideration or the word ‘consideration’ means that you are getting paid something in cash or kind.

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TS Maheswaran February 17, 2013 at 9:21 PM

Sir,
Can I gift Rs.2 lacs only to my son who is an NRI in US and transfer to his US account ? Are there any tax implications?? Thanks.

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Manshu February 17, 2013 at 10:35 PM

Yes, you can transfer the money to his NRO or NRE account, and then he can withdraw from there based on the conditions of the account itself.

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Raj March 10, 2013 at 10:18 PM

Hi Manshu,

If you are in India, you can only transfer funds to NRO account. Transferring funds to NRE account from India is not possible. It can only be done from accounts outside of India.

Regards,
Veeresh

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Manshu March 11, 2013 at 5:23 PM

Thank you for correcting me Raj. I wasn’t aware of this and thought you can use the NRE account to transfer funds from India as well. Sorry for the error, and thanks for correcting me.

Do you have any suggestions on how this could be achieved?

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Nisha February 19, 2013 at 11:59 PM

Hi, Suppose I win a contest online which offers a gadget worth Rs. 30,000. Am I liable to pay gift tax? It’s within the limits but apparently the people are asking me to pay tax before sending the prize. Should I pay and then claim for a refund? Seems unneccessary but what if they push for it?

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Manshu February 20, 2013 at 2:09 AM

As far as I know, anything over Rs. 10,000 is taxable and you have to pay 30% plus surcharge on it. Is that the amount they are asking you to pay?

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Nisha February 20, 2013 at 9:42 AM

They have not given details. But have asked me to pay Rs 7500 to the Post ofice or a National Bank. First I thought it was all fraud…but now as I’m reading more, it seems fair.
When I checked online, gift tax is for 50k and above. Don’t know which category this will come under though.
Thanks for your help.

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Manshu February 20, 2013 at 5:46 PM

This doesn’t fall under gift tax. It falls under Section 194B of IT Act which deals with lottery prize money and winnings etc. You can look that up if you need more info.

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Swati February 20, 2013 at 6:31 PM

Like Nisha I too have won the same contest. I don’t think it can be termed as lottery as It was not a lucky draw but based on writing skill and our articles were selected from many of the enteried submitted. I conclude this after reading last 2 paragrafhs here :http://www.caclubindia.com/articles/section-194b-7636.asp#.USTGUx36Wjk.
Also they particularly asked us to pay “Gift Tax”. Is gift tax and tax on Gambling / Lottery not different.
Can you please tell me more on this.

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Manshu February 20, 2013 at 8:41 PM

Hmm, the act governing these two are different but after reading that link you sent it feels like there is more complication when the prize is based on some skill or something so I’m sorry but I can’t help you more on this.

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ANIL SHAH February 20, 2013 at 11:10 PM

can i gift some amount from my salary to my son ‘s bank a/c ( 20 yr old , studying in engineering, non-earning) and have a FD in his name. will interest on FD will be tax free. how much amount i can transfer each year. is there any limit. can i have demat a/c account in his name and invest in equities. will clubbing provision apply here.

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Manikaran Singal March 18, 2013 at 9:43 PM

Whatever interest earned on FD in your son’s name will be treated as income of your son and not yours. If your Son doesn’t fall in any income tax bracket than it will not be taxed. There’s no limit on gift from father to son or vice versa.
Even if you open d’mat account in your son’s name and earn some income out of investment, no income will be clubbed in your income

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Anuj February 27, 2013 at 6:00 PM

Hi,
My father had gifted me Rs.1,00,000. I want to invest them under various heads
viz.( equities, PPF, LIC etc.)
I want to know:
1] Do my father taxable income will come down by the gifted amount(in this case Rs. 1,00,000)?
2] Will the earnings from the investment be clubbed under my name or my Father?

P.S. Me & my father both file IT returns and fall under different tax slabs.

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Manshu March 4, 2013 at 5:14 AM

1) He cannot reduce his taxable income by gifting the money to you.
2) When you earn returns by investing this money, it will be charged to you, not him.

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siddharth May 29, 2013 at 5:45 PM

If in this case, son invest gift amount in new property for his own , how father can get tax exemption on that amount (is there any way) ??

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Rupam February 28, 2013 at 2:20 PM

hi,
I also won online, probably tha same thing as Nisha. they are asking for Rs 7500 as gift tax. Is it genuine?

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Manshu March 4, 2013 at 5:08 AM

There is a tax so that part is legit, but whether the company giving you the gift is or not I don’t know.

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k p vaishnav March 4, 2013 at 11:28 PM

My nri son will gift me his flat and I would sell it and remit the amount in dollars to him in usa to pay for house bought thro libralised remittance scheme Introduced by rbi.
Please advice if I am to pay cap gain tax. This course is thought to avoid tax and financial burden if. He sells and transfers money. We solicit your advice’which will very
uch appreciated.

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Manshu March 5, 2013 at 6:49 AM

Yes, when you sell the property there will be capital gains, and you are required to pay taxes on them.

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Praveen March 5, 2013 at 10:31 PM

Hi,

If I gift money to my wife and she uses it in her business and makes money, will I have to pay tax on gains/returns she makes from the investment? Basically do I need to club profit generated from investment made on money gifted to my wife with my income for tax purposes?

Regards

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Manikaran Singal March 18, 2013 at 9:37 PM

Yes praveen. The income generated out of your gift toyour wife will be clubbed in your income and will be taxed as per your IT slabs. So if you want to support her in her business, than rather giving gift, give money on loan.

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NILESH March 6, 2013 at 10:44 AM

IF NRI SON GIFT CASH TO HIS FATHER WITH NOTARISED GIFT DEED.

WILL THAT INFLOW IS TAXABLE IN HANDS OF FATHER. ?

I PRESUME THE TAX IN STATES IS
PAID BY SON ON SUCH AMT TRF AS THAT IS HIS INCOME.

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Manshu March 6, 2013 at 4:50 PM

No, it is not taxable in the hands of the father.

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suresh March 7, 2013 at 11:57 AM

can a partnership firm consisting of son, husband and daughter -in- law ,
gift a land in its name to a woman (who is the wife and mother of the above said persons).

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Manshu March 7, 2013 at 6:10 PM

Sorry, don’t know about this.

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Manikaran Singal March 18, 2013 at 9:33 PM

I guess yes. A firm can gift but reciever has to pay gift tax.

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kanika March 8, 2013 at 7:17 PM

sir i am 28years old girl.2 years back i had shifted my city n left my job bcz my boyfriend told me to leave my job.i m not working since then.he promised me to marry.but didnt fullfilled it.2 years now he is saying he is going to marry a girl of his family choice.and now my family is also against me.he told me that he will give me 50 lakh indian ruppees to compensate what he did to me.i m middle of nowhere.my question to is what is the proper way to take money from him.so that he will not create any problem to me regarding it in future.plz guide me and what will be the tax i have to pay for it.beacuse he is not my husband or any relative.thanks

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Noname April 14, 2013 at 9:17 AM

There will be a tax liability in this case, as per the tax slabs.. There is no exemtion of any sort.
However, in case, you take money in name of someone who is a senior citizen, the tax liability may slightly reduce..

hope that helps.

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ashim March 9, 2013 at 4:38 PM

My grandfather’s brother’s wife and daughter wishes to gift an immoveable property valued (as per property registration rules) to be 1.50 crores. Will I incur Gift Tax liability on this property?

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Manshu March 12, 2013 at 10:09 PM

The relationship you describe above doesn’t fall under the relatives mentioned here so I do believe this will be charged to tax.

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C A BHARAT A DOSHI March 10, 2013 at 11:21 AM

ONE OF MY CLIENT WANTS TO REMIT RS.50000/- TO RELATIVE IN US . MY QUESTION IS
UPTO WHAT LIMIT ONE CAN REMIT THE AMOUNT TO US
WHETHER ON ANY TRANSFER OF FUND WHETHER WE HAVE TO ISSUE CERTIFICATE IN
FORM 15CB

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Jay Bhatt March 13, 2013 at 5:14 PM

Hi – My building is being re-developed and our current apartment is in the name of my mother. I’d like to buy a bigger apartment in the new building for which I plan to take a loan. However, as the flat is in my mothers name – I won’t be able to take a loan directly. The general opinion is that she gifts me a part of the house (say 50%) and then I can apply for a loan on that 50% which can be used to buy a larger accommodation. My questions are: 1) Would I have to pay any tax on this gift as the estimated value will be around 70lacs. If yes, how much? 2) I just got married 2 months back – if she gifts this to me as a part of the marriage – would that still be taxable or is that exempt? Any other tips/suggestions would be very helpful. Thanks!

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Manikaran Singal March 18, 2013 at 9:28 PM

The answers are hereunder:
1. You don’t have to pay tax on the gift. But yes, you may have to bear some cost in transferring the partial ownership in your name.

2. Mother can gift any amount , in any shape to her son anytime with no tax liability on either part.

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Amit March 13, 2013 at 6:30 PM

First of all thanks for this useful article. My father in law wants to gift two properties to my self and my wife. Will I have to pay anytax? The total value of both the properties is around 55-60 lakhs (going by market rates). The properties were acquired by my father in law only 2 years ago. My wife and I am are NRIs and my father in law is a farmer so he doesn’t pay any income tax.

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Manikaran Singal March 18, 2013 at 9:30 PM

There would not be any tax on the gift from father in law to son in law.and father to daughter.

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nalin goel March 18, 2013 at 1:45 AM

my mother thru her savings in household expense money given by my father since their marriage in 1942 had a habit of converting it into gold and called it `Stree Dhan’.though a wealth tax assessee somehow this stree dhan never got into WT returns.6months prior to her death she made a gifdeed of that gold in my childs name for his wife etc.Is it legal ?If not what do we do?We do not have access to any records

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Choudary March 19, 2013 at 9:19 PM

Hi there,
I have a question about a property that my mother wants to gift me. It’s my parents current residence in Vijayawada, Andhra Pradesh. It needs to be reconstructed and its my my duty to put money towards construction cost. I am planning to take bank loan but I can not get it directly as its not on my name. So my mother planned to gift me this property. This property is worth about Rs. 40lakhs.
My question is:
How much percent if tax I have to pay?
I am an NRI yet Indian citizen. How does my status effect my current situation?

Please help me.
Currently I am in India so I would like to complete all the formalities (transferring, taking bank loan, planning and start work) before I leave in April.

Thank you for your time and suggestions in advance.

Kind regards
Choudary

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Manikaran Singal March 25, 2013 at 5:35 PM

Chaudhary, you don’t need to pay any tax on the gift recieved from your mother and neither your tax status (NRI or resident individual) has anything to do with it.
But yes, you may have to bear expenses like some stamp duty or registration/transfer charges on transferring the ownership of the asset in your name.

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jay March 20, 2013 at 5:02 PM

sir can u suggest a gift format for gifting a shares from father to son which can be used in case required to produce before govt authority? Further whether is there any stamp duty payable on such gift? whether clubbing provision would attract in case of short term cap gain?

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Manshu March 26, 2013 at 6:18 AM

I found this format for a gift deed. This may be useful for you. http://www.caclubindia.com/share_files/format-of-gift-deed-1776.asp#.UVDwSBdQG8A

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babulal jain March 22, 2013 at 9:18 PM

can i gift 10,00,000=00 to my nephew
what is my tax libility and what is my nephew libility ?

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Manshu March 26, 2013 at 6:10 AM

You can give a gift to him but it won’t be tax free. It will be added to his income and then will be taxed accordingly. You will not have to pay additional tax for gift but you will have to pay whatever tax is applicable on how you earned this income.

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Manikaran Singal March 29, 2013 at 9:11 PM

Babulal…whatever your nephew (Major) recieves from you as a gift will be tax free in his hand as you come under the definition of relative (siblings of either of parent) for your nephew.

@manshu…had this been other way round..i.e where uncle recieve gift from nephew than uncle will have to pay gift tax.

Let me share one link from tax worry, where the author has described the relations in detail
http://taxworry.com/gift-meaning-relative-huf-exempt/

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Manshu March 30, 2013 at 7:34 AM

I am sorry for my error and thank you for correcting me Mani.

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Mak April 12, 2016 at 11:45 PM

Dear Sir,
My Fisrt Cousin is an NRI.
He gifts a sum of 30Lacs to his Father Say Mr. “A” (My Fathers Sibling): Tax FREE?
Now Mr. “A” gifts me 25Lacs (He is my direct relative i.e. my Fathers Sibling) will this transaction be also TAX FREE?

Need Clarity over this.
Will we both be exempted under Tax (Myself & Mr. “A”).
If yes, then this is a big gap in the tax laws 🙂

Awaiting expert comments please.

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SHAMIM AHMED ANSARI March 26, 2013 at 1:05 AM

I want to know about gift tax ? Gifts that are not taxable at all are those that are received from relatives. Relatives are defined by the following relationships of the individual:

1. Parents
2. Parents siblings and their spouse
3. Siblings
4. Spouse of siblings
5. Daughter and son
6. Spouse of daughter and son
7. Spouse
8. Spouse’s parents
9. Spouse‘s siblings and their respective spouse.

from Each person Can taken gift exeeding Rs.50000/-from relatives.[ 1 financial Year ] ?

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Manshu March 26, 2013 at 6:03 AM

Yes, as mentioned in the article you can get gifts from relative without an upper limit, and not have to pay any tax on it.

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Vinod April 6, 2013 at 3:57 PM

Hi an NRI friend of mine wishes to transfer the property he had bought prior to settling overseas to his mother who is a senior citizen so that she stays comfortably. He is not likely to return to India and has taken UK citizenship. In this case my understanding is as follows :
1 – He has to execute a gift deed transferring this asset to his mother
2 – The mother has to pay stamp duty as per market value
3 – I also understand there will not be any tax implication either to him or his mother

Please correct if wrong

Kindly enlighten me as to what happens in case the mother decides she does not want the responsibility of maintaining another asset and decides to sell the property. What will be the tax implications in this regard?

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Manikaran Singal April 8, 2013 at 3:06 PM

Vinod, you have understood in the right way.
Regarding your second point of mother selling the property…she will have to pay the capital gain tax on the gains made.

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Manshu April 9, 2013 at 5:39 AM

Thank you for answering that Mani!

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Sharmeen April 9, 2013 at 3:19 PM

My brother is an NRI and wishing to gift me an amount of Rs.30 lacs.
Will there be any tax implications on both of us?
Can I invest the entire amount in shares?

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Manshu April 14, 2013 at 7:59 PM

It won’t fall under gift tax, and you are free to invest the money in shares.

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Bharat April 10, 2013 at 1:06 PM

If a Gift Received in an NRE account above Rs. 50000 from a non-relative living in Abroad be Taxable u/s 56 or any other provisions of the Income TAx Act?

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Manshu April 14, 2013 at 7:42 PM

I am sorry I don’t know about this.

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Manikaran Singal April 15, 2013 at 4:59 PM

Bharat, you mean gift recieved from NRE account or in NRE account? I guess you meant the former. If the gift above Rs 50k is recieved from a non relative living abroad than also the complete amount recieved will be taxable in your hands.

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Vivek April 15, 2013 at 10:31 AM

Hi

Both me and my wife are working and both have taxable income from salary. If I gift her some money will it be taxable to me or her? If not what is the maximum that I can gift to her?

If the money that I gift her has to be clubbed with her taxable income then can I gift that amount to my daughet who is 2.5 years old?

Thanks
Vivek

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Manikaran Singal April 15, 2013 at 5:13 PM

Whatever monetary gifts you exchange between each other will not be taxable in anyone’s hands.BUt if you or she invest that amount somewhere than the gain will be added in the income of one whose income is on higher side.
You can gift any amount to your daughter, but the income generated out of that will be clubbed in your income (over and above Rs 1500/- p.a)

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Vivek April 16, 2013 at 8:55 AM

Dear Mani

Thanks for your reply. Will I get any tax exemption if I gift cash to my wife or vice-versa?

Thanks
Vivek

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charu April 16, 2013 at 7:07 PM

hi,
how is the gift tax calculated. is the gift amount taken as a part of your total income or is it taxed under a seperate category.
for example, if i have an income which falls into 10% slab , but i receive a gift of say 5 lacs from my mother,
a) will it raise my tax slab to 30% ( income more than 8 l)
b) how much tax exactly will my mother will have to pay on an amount of 5 lac

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Manshu April 16, 2013 at 9:20 PM

Yes, when you include the value of gift in your income, you will get an increased tax slab, and will have to pay tax according to that.

Your mother won’t have to pay any tax on the amount she gifts.

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charu April 16, 2013 at 9:44 PM

thanks manshu,
but this is quite confusing…i was under the impression, that the person who receives gift , doesn’t have to pay tax, but the one who is gifting has to ..
please clarify..
also how much tax ( please tell me the figure) one has to pay on an amount of 5 lac…is it of the order of 25%..

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Manshu April 17, 2013 at 3:44 AM

No Charu, the person giving the gift doesn’t have to pay tax since it is assumed that they have already paid tax on the income they generated which is the source of this gift.

The person receiving the gift has to pay tax as this is like an income source for them. So in your case, when you get the gift from someone who is not a relative as defined by the IT Act, that will be added to your income, and as a result you will have to pay tax. Over 5 lakhs is 20% plus surcharge, so it will be something like that. Though it really depends on what other deductions you get based on your expenses, savings etc. so I can’t tell you an accurate figure, but over 5 lakhs is 20% and less than that is 10% approximately.

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charu April 18, 2013 at 1:29 PM

please note that the person giving me the gift is my mother as i told in my first statement and kindly reread the query and clarify.
also can we make a gift deed retrospectively if the money involved was transferred through RTGS..

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Manshu April 18, 2013 at 8:03 PM

Even after reading your questions again, I think I have already answered them. You should probably post them in another forum where someone can do a better job of understanding what you are saying and answering it.

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charu April 16, 2013 at 7:08 PM

can i receive a taxfree gift from my mother’s sister and viceversa

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Manshu April 16, 2013 at 8:59 PM

Mani has shared an excellent link that shows gifts from which relatives are tax free. Mother’s sister is one of them.

You can see the whole list here Charu: http://taxworry.com/gift-meaning-relative-huf-exempt/

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charu April 16, 2013 at 9:48 PM

thanks Manshu ,I think the income from gifts should come under income from other categories and will be exempt from tax.please clarify..

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Manshu April 17, 2013 at 3:41 AM

Yes, you are right, it will be exempt from tax.

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ashim April 17, 2013 at 9:57 PM

My father’s brother’s wife and daughter wish to gift me a land with building property valued at Rs 2.oo crores (current valuation of property for stamp duty purpose). State Stamp Duty rules do not recognise this as a Gift from a relative. and as such, stamp duty has to be paid accordingly. However, I wish to know the status of this Gift as per the Income Tax rules ie whether I have to pay Gift tax on the value of this property?

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Manshu April 18, 2013 at 12:43 AM

Father’s brother’s wife is covered so gift from her will be tax free.

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ashim April 18, 2013 at 12:28 PM

Thanks for the response. Here the Gift is from both the father’s brother’s wife and daughter (wide and daughter jointly own the property). I understand that gift from the father’s brother’s wife is tax-free, but does that extend to a gift from the father’s brother’s daughter also.

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ashim April 18, 2013 at 12:29 PM

Thanks for the response. I understand that gift from the father’s brother’s wife is tax-free, but does that extend to a gift from the father’s brother’s daughter also.

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ashim April 18, 2013 at 12:36 PM

Is a Gift of a property from father’s brother’s daughter tax-free?

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Manshu April 18, 2013 at 8:25 PM

It is not tax free, and in the case of joint ownership, I really don’t know what would happen, better consult a CA.

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bipin April 20, 2013 at 12:57 PM

i want to know that monetary gifts of Rs 50000 or more received from friends is taxable or not

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Manshu April 20, 2013 at 9:07 PM

Yes, from friends they are taxable.

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YOGI April 20, 2013 at 9:43 PM

Have two queries
1. if my father give Rs 200000 to my son , who is 14 years old , will it be added in my income and will be taxable. my son is not having any PAN
2. Same amount if he gives to my wife, who has her PAN no, will it be clubbed with my income ?

in both the cases, how the interest (if the amount is deposited in bank) will be taxed.

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Manikaran Singal April 22, 2013 at 8:56 PM

1. Gift from grandpa to grandson is tax free, but the income generated out of that gift will be added in parents income.

2. gifts from father in law to daughter in law is tax free but the income genererate of that gift will be added to father in law’s income.

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bipin April 21, 2013 at 12:20 PM

how much gift from friends are not taxable

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Manshu April 21, 2013 at 10:41 PM

Less than Rs. 50,000.

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Manikaran Singal April 22, 2013 at 8:21 PM

Bipin, gifts from non relatives (including friends) are non taxable if recieved upto Rs 50k in total. If the total gifts in a year from non relatives exceeds Rs 50k than total amount with no exemption of Rs 50k will be added in your income and taxed as per slabs.

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Atul April 22, 2013 at 12:15 PM

Hi,
I am going to be marry next month and have few questions:
1. how much amount can my parents in law gift to me tax free.
2. How much they can gift to their daughter tax free.
3. Can they gift anything like cash,gold, car, equity etc? are all of them would be tax free.
4. Suggest me the best way so that no gift tax arise in marriage.
5. Agter marriage suppose 6 months or so can they gift anything will it be considered tax free.

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Manikaran Singal April 22, 2013 at 8:33 PM

1. before marriage they are not your parents in law and thus limit of non relatives will apply.
2. Any amount.
3. To daughter …yes.
4. Gifts recieved on the marriage are totally tax free. Just from income tax perspective you have to keep record of each and every gifts and the person from whom you are recieving it. in case it is asked by authorities and to prove that these are marriage gifts.
5. yes.

Just a tax planning advise…if your would be spouse is a non working girl and thus has no tax file, then better to recieve all gifts in her name, so you can build up a good tax file for her. This will considerably reduce your tax liability.which may arise out of interest or any other income after investing these marriage gifts. Also this tax file will help you in long term.

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Kamal April 23, 2013 at 11:02 AM

Please consider updating your original article to include the FCRA reporting requirement by receiving individual for Rs. 1 Lakh or more.

See below from Home Ministry Website.
Q.10 Whether foreign remittances received from a relative are to be
treated as foreign contribution as per FCRA, 2010?
Ans. The position in this regard as given in Section 4(e) of FCRA,
2010 and Rule 6 of FCRR, 2011 are as under:
Subject to the provisions of section 10 of the FCRA, 2010, nothing
contained in section 3 of the Act shall apply to the acceptance, by
any person specified in that section, of any foreign contribution
where such contribution is accepted by him from his relative.
However, in terms of Rule 6 of FCRR, 2011, any person receiving
foreign contribution in excess of one lakh rupees or equivalent
thereto in a financial year from any of his relatives shall inform the
Central Government in Form FC-1 within thirty days from the date of
receipt of such contribution. This form is available on the website
http://mha.nic.in/fcra/forms/fc-1.pdf

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Manshu April 23, 2013 at 8:27 PM

Thanks for sharing this info Kamal – I’m going to read little more on this topic and then update the post.

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Nihaal Merchant May 3, 2013 at 12:18 AM

Dear Sir,

Can my first cousin (my father’s real elder brother’s son) who is an NRI staying in Kuwait send Rs. 10 Lakhs as a gift in my father’s or mother’s name?

I actually wanted the gift in my name, but having read this article I realise that if I get a gift from my first cousin, then it would be taxable for me. Please correct me if I am wrong?

Thanks in advance!

Regards,
Nihaal

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Manikandan May 7, 2013 at 10:31 PM

Hi Sir.. I want to invest in a commercial property in the name of my house wife, further as I was away from India for the past 11 Months continously I stand to be a NRI. In that case will there by any tax implications on me or my spouse if I transfer the money to invest in this property from my NRE account to my wife’s normal savings account and she makes the payment and get the property purchased in her name ?? Please advise !

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Manikandan June 1, 2013 at 9:18 AM

Hi..Can Manshu or Manikaran Singal or anyone else reply to my query please ? Thanks !

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Manikaran Singal June 1, 2013 at 10:47 AM

Manikandan, Whatever investment you want to make in the name of your spouse (who’s a housewife) , the income generated from that investment will be clubbed in your income and taxed accordingly. It doesn’t matter if you are NRI or not. Rules of clubbing are same for everyone.

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Charan May 10, 2013 at 6:59 PM

Dear Sirs,

I’ve read with great interest the advise provided to the many people with concerns regarding tax and property.
I’m a UK resident born and raised in UK and my parents both born and raised in India however married in the UK 42 years ago.
My grandfather purchased land 20 years ago which my father inherited following my grandfather’s death. My father died 2 years ago without leaving a will and my investigations revealed that ownership & title will automatically fall to the legal heirs.
My questions is if I sell the property/estate with a current market value 7crore what % tax are we required to pay? And the best way to move the cash back to the UK.?

Many Thanks for your kind support.!

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Aditya Soni May 13, 2013 at 2:17 PM

I have booked / purchased a flat in my Name in Mar’13 in which my father has contributed a sum of Rs. 23.7 Lacs and further he plans to contribute a sum of Rs. 5 Lacs at the time of registration & possession of the property. The amount of Rs. 23.7 lacs. was directly paid to the builder from his account through cheque.
What steps should he take to regularize this transation so that there are no tax / legal implication?
Further If Gift Deed is the way then what are the ways to make a Gift Deed?

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M D May 21, 2013 at 1:50 PM

CAN NRI SON IN LAW GIFT TO HIS FATHER IN LAW AND MOTHER IN LAW IF YES THAN WHAT IS UPPER LIMIT

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Manshu May 22, 2013 at 8:44 PM

Yes he can gift…and there is no upper limit.

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Deepu May 23, 2013 at 7:29 AM

Hi,
I am a government employee and i wish to trade in stock futures through my mother’s(a house wife without any income) account.
1. If i gift her some amount and she invests it and makes profit would it be considered as my income or her income ?
2. If I give the amount as a loan will there be any advantage ? Or would it be better if my wife gives the money to my mother?
3. My wife is not working and is not having any income.

Thanks in advance

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Manikaran Singal May 29, 2013 at 10:00 PM

1.) her income
2.) Nope. as you are into service so you cannot show this as business expenses. So gift ot loan will hardly make any difference.
3.) If you gift your mother through your wife who herself is not working. This will make things bit complex. It may lead clubbing of income in your name.

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Mahesh May 25, 2013 at 10:16 AM

Good Morning Sir,
1. I am Tax Consultant, I want to know that my client (Female) want to give gift of Rs. 2/- lacks to her Husband. So from the definition of Relative it is exempted from tax liability but how can I display this in IT return that she/he given or received gift in their IT return as per IT Act.

2. Whether the gift given or taken is necessary to take in written form? If yes, in which manner.

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siddharth May 29, 2013 at 6:00 PM

There’s a property on my mother’s name and we need to sell it in few days. We plan to re-invest Capital gains in form of new property and tax saving bonds. I want to know if my mother could gift me a part of her capital gain as a gift immediately after sale of property( in the form of new property or tax saving bonds) with zero tax gain on these funds. Following are the two ways which I can think of : 1) She buys a new property in my name and could show that in her capital gain investment. 2) She buys a new property in her name only and then immediately transfers it to me without any tax gain. Please help me and suggest some possible way for this situation.

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Manikaran Singal May 29, 2013 at 9:47 PM

1) if she buys property in your name, then capital gain tax could not be saved. As for that the property has to be in her name as sold property was of hers only.

2) She can do that,but in this case the property transfer charges (stamp duty, registration fees etc.) has to be paid.

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siddharth May 30, 2013 at 3:26 AM

Thanks for your reply Mani ji. It is understood from your second point that there’s no 36 months restriction on gifting a newly bought property (no short term capital gain issues either).

My next query Sir.
Can she gift a part of original property to me and bring me co-ownership of property so that once property is sold, I can have my independent share of money .

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Ramsubramanian June 3, 2013 at 5:25 PM

Kindly let me what tax liability my wife will have if she gets cash gift from our daughter. My wife is 76 yrs of age and is not an income tax payee now for all the services we had done for my daughter and son in law when.when they needed in early life my daughter feels she has to compensate us as they are well off now, I know that the interest from the gift if invested in bank will be added to her other income please clarify
Thanking you
Rs

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Manshu June 5, 2013 at 4:37 AM

The gift itself will not attract any tax and your wife won’t have to pay any tax on that but when she invests that anywhere and earns interest on it then she will be liable to pay tax on that.

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Ramsubramanian June 3, 2013 at 5:29 PM

Please reply thru e mail

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Chetan June 5, 2013 at 9:23 PM

Hi,
I have a query with regards to Transfer/Sale of property. The case being
Suppose i am buying a land from a non-relative. The FMV of the land is 50 lakhs. I am buying the same at 10 lakhs.
1-Will the balance amount of 40 lakhs (FMV-Consideration) be termed as gift received
2- if yes, then do i have to prepare a gift deed . and what will be the tax implication of the same(40 lakhs) in my hand
3- If no, what other things i would be required to take care while buying the property at a lower than FMV.
4- Any tax implication in the hands of the seller?

Thanks,

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Gopal June 7, 2013 at 5:01 PM

Hi, I am an NRI but I regularly file Income Tax returns in India for my India Income. I want to gift INR25Lacs to my father who is a resident Indian and an income tax assessee. I had transferred the requisite amount to my NRE a/c in India. But somehow, I transferred INR10Lacs to my NRO account. Now, Can I gift INR15Lacs from NRE a/c and INR10Lacs from NRO a/c to my father so that it is tax free in his hands? What documents, if any, may be required by the income tax authorities in India?

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jin June 12, 2013 at 4:34 PM

had a few questions:
1. is there any tax associated with gifting a land from daughter(NRI) to dad(Indian Resident) on the Indian side?
2. On the US side, it looks like the person gifting the land has to pay taxes irrespective of daughter-father relation. Is that true, if so how does the calculation work?

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Manshu June 14, 2013 at 2:54 AM

1. No, there is no gift tax in this case.
2. Sorry, not aware of this answer.

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Gopal June 13, 2013 at 11:05 AM

Hi, I am an NRI but I regularly file Income Tax returns in India for my India Income. I want to gift INR25Lacs to my father who is a resident Indian and an income tax assessee. I had transferred the requisite amount to my NRE a/c in India. But somehow, I transferred INR10Lacs to my NRO account out of that remittance. Now, Can I gift INR15Lacs from NRE a/c and INR10Lacs from NRO a/c to my father so that it is tax free in his hands and in my hands also? What documents, if any, may be required by the income tax authorities in India for the assessment of my father’s or my own?

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Manshu June 14, 2013 at 2:26 AM

Gifts are tax free so you can give this to your father. I’m not sure about documentation, he may need to show it as a gift in his assessment and the bank statement may be enough but I don’t know this for sure.

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Manikaran Singal June 17, 2013 at 5:57 PM

Yes Gopal, you can do this. gifts from Son to father is totally tax free in father’s hand. It doesn’t matter from which account the amount is getting transferred. For you it is already out of tax paid income, so you don’t have to pay any extra tax. You don’t have to do any documentation for this. If at all you want to do the same, than you can write a simple Gift deed saying that you are gifting this much amount out of natural love and affection to your father on plain piece of paper quoting yours and your father’s PAN number.

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Lata June 19, 2013 at 1:38 PM

I am Indian citizen and staying and working in India. I wish to gift to my younger married sister. I am of 58 yrs, single and have no liability. How much maximum amount I can gift to my sister and how can I claim rebate in my income tax return ?

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Manikaran Singal June 22, 2013 at 11:11 AM

Lata, you can gift any amount without any limit. There’s no rebate available on gifting. Its just that for your sister, the gift received will not be taxed.

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S.Vaidyanathan June 28, 2013 at 11:20 AM

Dear Sir,

I have released a site of my father to my sister through a release deed registered with the local authorities. My sister inturn has given me a gift of Rs. 12 lacs. Is this taxable? Please let me also know what are the documentations required for this gift from my sister.

Regards,
S.Vaidyanathan

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Manshu June 30, 2013 at 8:56 AM

I am sorry, not familiar with rules on release deeds.

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S.Vaidyanathan July 1, 2013 at 1:17 PM

This is a inherited property from my late father, which is shared by all the sons and daughters of my father. All of us have given in writing to my elder sister that we will relinquish our rights on the property (which is in the form of release deed). The site has now been transferred from my father to my sister. Inturn, my sister has given us 12 lakhs. My question is whether we can consider this 12 lakhs as gift since it does not attract any gift tax.

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Anand July 10, 2013 at 1:51 AM

I like to gift my father a house , which I have in my name. can i gift him. What is the procedure.

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Manikaran Singal August 16, 2013 at 10:52 AM

You have to draft a gift deed on a stamp paper, get it witnessed by 2 witnesses and register it. Registering a gift deed especially in case of immovable property is mandatory,failing which the transfer would be invalid. Also pls note that this transfer would be irrevocable. Once the property is gifted you will not be able to reverse the transaction and not even ask for any compensation.

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Nasir July 31, 2014 at 4:30 PM

“irrevocable” means? again father can not gift (or sell) it back to son?

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Pooja July 11, 2013 at 3:58 PM

I received a gift from my parent company in the US 2 years back. Does the company I work for in India (wholly owned subsidiary of the parent company) have the right to collect Gift Tax now after my return to India?

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Manikaran Singal August 16, 2013 at 11:05 AM

Gift from your company. Great!! but pooja, your company doesn’t come in the definition of relative, so better talk to your company’s tax accountant. Depending on the type of gift if tax laws say so, then your tax calculation will automatically take into account that gift. As your employer will pay your tax and file your return as far as salary income is concerned, so don’t worry if that gift is taxable then your company will take care of it.

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anil July 14, 2013 at 11:24 PM

Hi

My father in of Indian nationality, lives and has retired in India. I am a british citizen and have been in the UK for more than 10 year.s

He’s wishes to send me a million dollars, I understand that no tax is payable because he is my father. is there any issues on sending the money to UK?
Do you know efficient methods to send large amounts from india to the UK?

thanks

anil

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Manshu July 15, 2013 at 8:12 PM

Sorry I am not aware of a way to do this.

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ravif July 23, 2013 at 12:11 PM

What documentation is required for IT authorities for gift from a relative? Is the fact that the amount comes from a relative sufficient.

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Manikaran Singal August 16, 2013 at 11:10 AM

If the amount is significant then better to draft a gift deed by mentioning the pan number of the giver and receiver and do mention that he’s giving gift due to natural love and affection.

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Farooq July 26, 2013 at 12:16 PM

Hi,

I had brought a gemstone in Dubai which turned out to be an antique / collectors item. Now still I am abroad and here a person wants to buy it. Will the remittances of this sale to my account in India taxable? Your immediate response will be highly appreciated. THANKS

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Henna July 30, 2013 at 12:53 PM

Hi,
As I understand gift from specific relatives is tax free for recipient. For donor also there is no issue. However if recipient is not a minor child, or spouse or son’s spouse then the interest/ money made on the gift is taxable from recipients income. Else interest/ money made on gift is taxable from donor income.

My question are: please consider gift higher than 50K.
1) I am married woman and my parents gave me cash exceeding 50k and I made 2FD for same in 2 banks. Bank has already deducted tax. I am showing interest as income from other sources. How should I show the tax that bank has already deducted?

Question 2) my father in law gave me money which I put in my ppf. I am showing ppf as savings under section 80C. Anything I need to be aware of?

Question 3) My parents gave me money to decrease liability of my home loan. Anything from tax angle here?

Question 4) my parents gave me money which is lying in my salary/savings account. Any tax implication here?

Please provide responses to me. Would be grateful. I am assuming in all above cases that money I initially received that is principal is not be shown as any income. If I m wrong please correct me and let me know which ITR form I need to fill.

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RAJAT July 30, 2013 at 1:06 PM

Hi, My grandfather divided his entire immovable assets and distributed as per his will to his 3 sons. Can these sons gift their portion to their sons or daughters as per their will. If yes what kind of tax liability shall fall.Please advise . Regards

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priti August 9, 2013 at 7:59 PM

my sister wants to give me Rs.5 lacs. she is working with LIC. how she can gift me
can you explain me.whether she has to do certain legal process or filing of document

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paresh rege August 12, 2013 at 2:07 PM

we have a flat in mumbai which holds name of my mother and her brother . the property is duely registered in 1981. now the said property is going for redevelopment. my mother’s brother wants to gift the property to my mother. what would be the tax implications?

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Rita August 20, 2013 at 2:53 PM

My Parents want to gift me Rs 10,00,000 towards part contribution of Purchasing a flat of about 1 crore. Would they have to pay any Gift tax? Would any additional tax be levied on me?

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Manshu August 20, 2013 at 8:24 PM

No as long as tax has already been paid on this money – neither you nor them need to pay any tax again.

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Bll August 25, 2013 at 1:20 PM

I live in delhi. I am working but expenses are more than earning as my husband is unemployed. Also i m planing to do some study/course.
My younger brother works in US frm one year and earns well. I have requested him to send me some money for my need and some for downpayment of a flat for me. Can u pls tell me any tax implications for both of us? Also how best way he can send me money? Bank transfer or western union??? Urgent pls

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Naresh Chandra Jain August 27, 2013 at 12:42 PM

Dear sir,
Can my son NRI/POI donate shares of indian companies to his mother (indian citizon).

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vikas mishra September 7, 2013 at 10:18 AM

Hi, I am a NRI in USA. My brother in India bought an apartment on his and my father’s name last year. It was for 1 crore. I have been paying most of that on construction linked plan since last year and has payed almost half of it by now. I don’t want my brother and father to pay me back this amount. I have been paying this through my NRE bank account. The checks go directly to builder’s account. Any tax implications.? Is it possible that I can just say that I wanted to help my brother and father in this way and don’t want the money back from them? Can I avoid showing it like gift or lending.

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Anil jain September 17, 2013 at 1:17 PM

Dear Sir ,
I have gift my partnership in my family owned business to my wife . Second partner in the firm is my son and there is no monetary transaction included but when i gone to register it at registrar office he said you have to 6% of stamp duty on it . As you cannot gift your partnership stake to anyone. Please advise .

Warm regards
Anil Jain

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ANUPAMA GARG September 18, 2013 at 8:55 AM

my mother in law gifted a property to me .I reconstructed and sale it what is tax position on it

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akila September 20, 2013 at 12:26 PM

Hi.. Am selling my house in Chennai and am due to receive about 1.6 cr for it.. I don’t own any other houses and am not employed anywhere.. Of the money received i wanna purchase two flats each about 50l each in my name,which i was told is tax exempted.. Apart from this i would like to gift 20 l each to my 3 siblings. Could you please tell me how this can be done? And also if there is any tax that i d incur? Also if not as Money can i gift them that amount in the way of a down payment for aprtments in their names which they could later pay off through housing loans..? Thanks in advance..

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Suraj Gaikwad November 13, 2013 at 8:09 PM

Hi. The flat is registered in the name of my mother and i have 1 sister who is married. Now i want to transfer the flat ownership to my name by the way of gift transfer and stamp duty is around Rs.180000/-. I want to know that the stamp duty to be paid by me will be considered for tax exemption or so? Please advise.

Suraj

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Ganesh Jayaraman November 27, 2013 at 10:35 AM

Hi, My mother in law is going to dispose of a house property registered in her late husband’s name and is going to give a third of the proceeds to my wife( apprx Rs.1300000) and another third to her son(my Brother in law). What is the tax implication? Does my wife need to pay tax on her share (she is a housewife)?

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bindu January 8, 2014 at 3:06 PM

need to make a gift deed…my sister has gifted me a car…so need
to make a gif deed for the same..pls help

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bindu January 9, 2014 at 3:11 PM

hi..my moms sister has transfered an amount to my bank account …she is a tax payee n residing ion India…will i have to make a gift deed or a letter from her and will I also be paying tax for the same…also whats the maximum one can transfer

thank un

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Manshu January 9, 2014 at 6:06 PM

Since she is a relative it isn’t taxable, and there is no upper limit either.

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GAURAV GAGNEJA January 28, 2014 at 10:20 PM

I WANT TO GIVE GIFT OF RS. 50000 IN CASH TO MY MOTHER. CAN I AVAIL ANY CLAIM IN INCOME TAX

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Rajesh Kumar Khurana February 15, 2014 at 1:23 PM

Please let me know that My father want to gift me a newly constructed floor of a house in Delhi of 150 sq yards, if I wish to get it registered in my name how much registration tax/duty I have to pay for it.
thanks & regards

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sachdev March 4, 2014 at 11:48 AM

my wifes cousin that is her buas son that means my wifes fathers sisters son wants to give my wife a gift cheque of Rs.500000 would there be any tax element attached to it pls advice urgently thank you.

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Ronfire777 March 21, 2014 at 4:03 AM

Hello
When my wife and I were married 12 years ago, her mother gifted my wife a sum of money, which we placed in joint TD’s in India. The accounts are NRO and have remained with the same bank since then.

With the recent change in rules regarding transfer to NRE/repatriation, I would like to find out whether a gift received shortly after marriage meets the criteria for transfer to NRE or repatriation overseas (within the financial year limits allowed)?

Thanks

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Dominic Deepan April 7, 2014 at 12:47 PM

hi,

my friends from u.s wants to buy a land in india, chennai. and amount is 6cr when converted to indian ruppees. i am aware of gift tax.

i just want to know, what are the documents i need? i askd with my hdfc banker. bt am nt satisfied with thier answer.

if my send me email that he is transacting money from u.s as gift to me, will that be taken as a proof.

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Nirmalya Guha April 8, 2014 at 11:26 PM

Hello Sir

I learnt that the amount of money that I gift to my parents is exempted from income tax on my side i.e I can claim tax return on the same amount.
If this is applicable, I would like to know the procedure of such gifting and what proof I need to provide to Tax authorities to claim tax benefit.

Thanks
Nirmalya

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Arijit May 2, 2014 at 3:10 PM

Hi,

If you get the answer then please let me know as well.

Thanks,

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Manikaran Singal May 29, 2014 at 12:31 PM

Nirmalya, what you gift to your parents is out of your tax paid income i.e you have already paid or will pay tax on that. There’s no deduction as such available on that gift.
This is just that the amount that you gift to your parents is non taxable in their hands. also the interest they earn by investing that amount will not be clubbed in your income which otherwise would have if the gift was made to minor child or your spouse.

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Arijit May 29, 2014 at 12:43 PM

Hi,

What If I want that my parent should pay the tax on the gift that I give them is it possible?

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Jeeva April 10, 2014 at 3:03 PM

Hi,
I am working in Netherlands, and I am employed here for past 2 years.
And I am keep transferring my money to my Indian bank account.
Could you tell me, what is the maximum amount I can transfer as tax free per year?
Do I need to file tax return in India every year?

Regards,
Jeeva

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naveen April 15, 2014 at 4:17 PM

Hi,

I got rs 10 lack from my father in my bank account. Is this my income? We have to make any paper for this ammount.
Pls reply
Thnx
Naveen

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Manikaran Singal April 25, 2014 at 6:36 PM

This reciept has to have some reason to it. Is it a gift or a loan? If it is a gift you have to prepare a gift deed which can be on plain paper and if this is a loan, then also its better to get one agreement signed between both of you. Consult your tax consultant for these documents.

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sanjay April 20, 2014 at 6:19 PM

sir,
i have learnt that i can gift an amount to my very senior citizen dad for opening FD in his nameand avoid clubbing of income from the interest generated on from that FD .

kindly tell me the procedure to do that to satisfy the IT authorities.

–sanjay

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Manikaran Singal April 25, 2014 at 6:34 PM

Sanjay, you are right. You can gift any amount to your dad and the interest generated out of that amount will not be added back in your Income.
You just have to write on a plain paper that you are gifting this amount to your dad out of natural love and affection by quoting his and yours Pan number. Sign it and also get it signed as acceptence of amount from your dad. This letter is sufficient to satisfy IT authorities.
Also do remember to pay this amount by cheque.

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rahul September 24, 2014 at 2:39 PM

I gifted money to my dad via Third party transfer, and not via cheque.
Is it still ok to have the acceptance of amount from my dad in a plain paper to satisfy IT authorities ?

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Ajay Maurya April 21, 2014 at 8:34 PM

Dear all,

what is gift tax rate in India

From Ajay

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Manikaran Singal May 29, 2014 at 12:35 PM

There no specific tax rates on gifts. Its just that if the gift comes under taxable category then whatever you have gifted will be added in reciever total income and will be taxed as per the income tax slabs he falls in.

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Arijit May 2, 2014 at 3:07 PM

Hi,

I have a query exactly related to this, suppose I want to gift some amount to my mother/father, lets say 1 lacs for easy calculation.

Ques 1:
Whether bother will be exempted from paying tax on that (if both lies in any tax slab ie 10/20/30 %), I think not but still want to confirm.

Ques 2:
Who will have to pay the tax then if Ques 1 is not applicable?

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Manikaran Singal May 29, 2014 at 12:40 PM

Whatever gift son gives to his parents are tax free in the hands of parents which ever income tax slab rate they fall in.

Arijit, you are gifting this amount from your income on which you are already paying taxes. so the gift is out of tax paid or payable income of you

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Arijit May 29, 2014 at 12:44 PM

What If I want that my parent should pay the tax on whatever amount I gift to them instead of paying tax on my side, is it possible?

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babulal jain May 6, 2014 at 8:01 AM

gift from me to my nephew’s wife Rs. 500000=00 .

is it taxable in her account ?

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Manikaran Singal May 29, 2014 at 12:46 PM

Mr babulal,
the gifts given to following relations are tax free in their hands
1.Parents
2.Parents siblings and their spouse
3. Siblings
4. Spouse of siblings
5. Daughter and son
6. Spouse of daughter and son
7. Spouse
8. Spouse’s parents
9. Spouse’s siblings and their respective spouse.

your nephew’s wife doesn’t come under this list. So the amount that you want to gift her will be taxable in her hands.

Reply

Ajay c May 22, 2014 at 11:46 AM

My father in India has passed away and my mum wants to sell the family home and divide the money amongst her children.
I live overseas and am an OCI. Can I take the money out of India without paying tax in India?
If so, how do I go about proving this to the Indian tax department?

Thanks

Reply

Jitendra P.S.Solanki July 10, 2014 at 5:06 PM

Ajay,

Much depends on how the money is received. In current situation the selling of house will incur capital gains and so it will be liable to capital gains tax on the hands of the owner. Was there any Will of your father. If not then you are equal share holder in the property and so liable to pay income tax on your share. Else if the house was willed to your mother and then she is distributing then the the entire tax liability will rest on her.

Reply

Arijit May 29, 2014 at 12:48 PM

What If I want that my parent should pay the tax on whatever amount I gift to them instead of paying tax on my side, is it possible?

Reply

Jitendra P.S.Solanki July 10, 2014 at 5:10 PM

Arijit,

You can gift only after paying the required tax since the income is earned by you and so you are the tax payer. In hands of your parent it will be tax free.

Reply

patil, n .b . June 17, 2014 at 4:34 PM

I am a senior citizen and have shares purchased about two decades back out of my tax paid income. out of the above, i want to gift some shares worth about rs. 30 -35 lakhs to my married daughter who has her own income and pays tax. please advise me as to:
(a ) whether she has to pay gift tax for this gift,
(b ) if yes, can the gift tax liabelity be obviated by making her my nominee in the demat account and transferring the shares to her through my will so that she will get the shares after my death.

Reply

Jitendra P.S.Solanki July 10, 2014 at 5:17 PM

patil n.b.

a) She will not be paying any tax as daughter is in the list of relatives for whom the gift tax is exempted.
b) In shares lying in Demat account the nominee is the demat account is the final heir. As per Supreme Court Ruling 2012 the companies act overrules the Will according to which the nominee in the demat account is the final legal heir of the shares. So the transfer of shares will not happen through a Will but as per nominations in demat account. You can choose this option if you want to bequeth shares after your death.

Reply

MIHIR BISWAS June 18, 2014 at 12:27 PM

I Want to gift my minor daughter rs45000/yr and want to continue the same for next few yrs .Is that possible?If yes what’s the process of gifting?

Reply

Jitendra P.S.Solanki July 10, 2014 at 5:41 PM

Mihir,

In case of minor any income earned on the gifted amount is clubbed with income of the donor . So if you are going to invest it the income earned will not be treated as your minor son income but of yours.
For better results register a gift deed even if it is not mandatory. You can mention how and what amount you will be gifting to your sons. But remember the clubbing rule in case of minors.

Reply

Sharan June 27, 2014 at 12:16 PM

Hello Aashish, my question is regarding mode of transferring money as a gift. I want to transfer a few lakh rupees to my father’s account. If I use net banking (which is simpler than transfer by cheque), will I need to prepare a gift deed, etc. as proof of the gift? I am looking for a simple way to transfer the funds quickly and safely such that it can easily be shown to be a gift. Thanks.

Reply

Jitendra P.S.Solanki July 10, 2014 at 6:06 PM

Sharan,

For movable properties like jewellery or cash registration of gift deed is not mandatory. However apart from the transfer a gift deed will do good ob backing the gifted asset.So prepare a gift deed along with transferring the money.

Reply

mihir modi June 27, 2014 at 4:54 PM

A gift of Rs. 3 lacs in cash was given by husband to his spouse in F.Y.2013-14 but gift deed for the same was not executed at that time. whether he can execute the deed for the same in F.Y. 2014-15?
what are the validity of such deed?

Reply

Ramesh July 1, 2014 at 2:16 PM

Hi, I have gifted a house to my sister and got the dift deed registered. After 3 weeks of this gift deed is executed, my sister gave me Rs 31 lakhs as a gift. Will it lead to any tax complications or will it be considered as ‘avoiding the registration duty’, followed by ‘capital Gain Tax”?

Please help

Reply

Jitendra P.S.Solanki July 10, 2014 at 6:37 PM

Ramesh,

If proper tax provisions are followed then there should not be any issue. However the onus lies on you to prove it to the taxman that the transaction is not done to avoid any taxation. Registration of gift deed in movable properties is not mandatory but capital gains tax has to be paid by the assesse as per the income tax provisions, if it arises.

Reply

k d shah July 5, 2014 at 10:01 AM

Ihave some more than year old bonus shares,which

iwant to gift to my wife.For selling for i tax purpose what will be her date and price of purchase. Thanks K D Shah

Reply

Jitendra P.S.Solanki July 10, 2014 at 7:02 PM

KD shah,

In my view, in the case of gifted property, the cost of acquisition is the cost to the original holder i.e. you (or FMV as on 1.4.81 if the date of purchase is earlier). However for calculating indexation benefit the date of the gift should be taken as date of acquisition.
You can get it clarified from a tax expert.

Reply

satpal mittal July 6, 2014 at 11:57 AM

i am 50 years and want to gift my son (20 years and a student with annual income of Rs 2 lacs) a sum of rs. 10 lacs. what about tax implications?

Reply

Jitendra P.S.Solanki July 10, 2014 at 7:05 PM

Satpal,

Your son will not have any tax implication on the gifted amount.

Reply

satpal mittal July 10, 2014 at 7:18 PM

Thanx Mr. Solanki. But what about any tax etc. at my end? Also shall my son have to pay any tax if he invests this amount in a debt fund?

Reply

Jitendra P.S.Solanki July 11, 2014 at 10:32 AM

Satpal,

If this is your income then you are the tax payer and so the tax liability is on you. So you will be gifting this money after paying the required tax. Once the money is gifted to your son then any income earned on it will be treated as his income and he will be liable to pay income tax.

Reply

Anup July 12, 2014 at 11:48 PM

I think this information is incorrect.

Under the Liberalised Remittance Scheme (LRS) established by RBI, gifts from Indian Residents TO NRI close relatives are limited by a certain amount (whereas your article says that there is no limit on the amount of gifts)

http://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=6712

Please correct me if I am wrong. As per my understanding, my Indian resident father can only gift me, NRI Son, the amount established in Liberalised Remittance Scheme (LRS) . This is currently set at USD 125,000 per year and changes frequently.

Reply

Jitendra P.S.Solanki July 14, 2014 at 8:30 PM

Anup,

Yes that’s right. Indian Resident can transfer gift in cash to NRI relatives upto the specified limit set by RBI in one financial year. This in my view means resident can gift more cash money to NRIs close relatives but will have to do it in the next financial year.

Reply

S.M.Vishwanath July 22, 2014 at 1:02 PM

Many thanks for running this service. I have a question ! Though a reply posted on 29th may 2014 on this blog clarifies the ‘relatives’ from whom ‘gifts’ are not taxable – but is there any change after the ‘budget’ presented by Mr. Jaitley in July 2014. If my wife gifts me say 1 lac – will she or myself have to pay IT on the same. Thanking you sincerely in anticipation.

Reply

Jitendra P.S.Solanki July 26, 2014 at 9:40 AM

S.M.Vishwanath,

There is no change on Gift tax in Budget 2014. But when a gift is made then tax liability is on the donor i.e. person who is gifting money. So in your case tax liability on the amount she is gifting will be on her as it is her income.

Reply

S.M.Vishwanath July 26, 2014 at 11:00 AM

Many thanks for your clear and concise reply !
My sincere thanks for all your contribution on this very useful website.

Reply

prakash July 23, 2014 at 3:59 PM

My father sold his property (House), which in return he got capital gain money out of it. Can this money be gifted to his son or wife ? If ‘yes”, than at what period he can gift (Immediately or after 1 year……….)

Please suggest.

Reply

Jitendra P.S.Solanki July 26, 2014 at 9:43 AM

Prakash,

Since its capital gains he can gift the money only after paying capital gains tax. Once he has paid this tax he can gift the amount.

Reply

bhola nath gupta July 27, 2014 at 11:59 AM

If my daughter Rs.5 lacs in cash from relatives and friends on occations of her marriage. this amount is exempted or not from gift tax in her hand.

Reply

Manikaran Singal July 29, 2014 at 1:32 PM

Gifts received at the time of marriage are totally exempted in the hands of receiver. You just have to have the details of the people who have gifted and what, if at all is required by income tax department.

Reply

Nikunj Patel July 29, 2014 at 10:08 PM

Hello All,
My brother, who is NRI, wants to gift a new car to me. Mean, he pay car price to dealer directly from their NRI account and car registration done on my name. Is this possible? If yes, then how to do gift deed. Any gift deed format?

Reply

S.M.Vishwanath August 5, 2014 at 12:04 PM

Hi ! Yes !……This is possible. You can keep the ‘reciept’ given by the car dealer which shows ‘recieved — amount by cheque no dated – on behalf of mr ( your name ), your PAN no and the car registration details. In addition take a bank statement of your NRI brother which shows the transfer of amount to the car dealer’s account, and letter from your brother – on his letter head which mentions this gift.

Reply

Nikunj Patel August 5, 2014 at 3:22 PM

Thanks sir for your reply.

But if my brother directly pay amount by cheque to car dealer and car registration done on my behalf. is this valid process? and we do gift deed process.

Reply

Falan Harrington August 3, 2014 at 6:30 AM

Hi, I need some help. A friend of mine (NRI) wanted to transfer 5lakhs to his NRE a/c so he could make a Fixed deposit. However he transfered it to sisters a/c by mistake. Now she is unable to transfer that amount into his a/c as its an NRE a/c. So what can be done here?

Reply

Jitendra P.S.Solanki September 5, 2014 at 1:20 PM

Falan,

Your siuster cannot transfer Rupee funds to NRE account as it is not allowed. Your friend should speak to the bank that this transaction was done by mistake. They will guide him on the exact procedure of receiving teh funds back into his savings account from which the funds are being transferred.Ideally the funds should first come back to his own account and then he should transfer to his NRE a/c.

Reply

Kunj August 4, 2014 at 4:02 PM

My father want to gift me car from australia so i have to pay import duty to indian government ?

Reply

Jitendra P.S.Solanki September 5, 2014 at 1:22 PM

Kunj,

Yes you will have to.

Reply

Sabal jain August 11, 2014 at 8:20 AM

Hi, my grandfather’s brother is giving me a loan . He is citizen of USA . Do I need to pay tax on the loan ?

Reply

Jitendra P.S.Solanki September 5, 2014 at 2:22 PM

Sabal,

Only some specified relatives are exempted from paying gift tax. If you fall in that list of relatives you won’t have to pay gift tax. Else you will be liable to pay.

Reply

Jitendra P.S.Solanki September 5, 2014 at 5:51 PM
vinoth August 19, 2014 at 5:35 PM

What if i am gifted 1Lac from a trust should i be paying the tax for it.

Reply

Jitendra P.S.Solanki September 5, 2014 at 2:25 PM

Vinoth,

Yes tax will be applicable since only specified relations are exempted from gift tax.

Reply

Jitendra P.S.Solanki September 5, 2014 at 5:50 PM

Hi Vinoth,

A correction- Gift tax is exempted in following case “Gift from any local authority (as defined under section 10(20)) or from any fund / foundation / university or any trust / institution referred to in section 10(23C) or registered under section 12AA”

So you need to check the status of the trust.

Reply

Sneha August 24, 2014 at 6:57 PM

Hi Mani. Thanks for the wonderful article and the follow up comments – it makes life easy 🙂

I wish to liquidate the gold that I had received from my NRI parents and brother for my wedding. For the purpose of determining the LTCG tax I have done the following calculations. I’d appreciate if you could you please confirm if the following calculations are correct.

Cost of acquisition of Gold(Aug 2010) – Rs.41,75,795/-
Cost of acquisition with indexation – Rs.41,75,795 x 1024/711 (CII 2014-15/CII of 2010-11) = Rs.60,14,084/-
Sale Consideration = Rs.65,15,000/-
Capital Gains = Rs.65,15,000 – Rs.60,14,084 = Rs.5,00,916/-
LTCG tax of 20% on this amount = Rs.1,00,183/-

So if I understand correctly I have to pay Rs.1,00,183/- as LTCG tax?
I understand that I should declare this amount in my returns.
Secondly, my parents have not preserved the purchase bills of the gold. In that case, is it better to draft a gift deed from them in case the ITO wishes to verify the origin of the gift. Will not having the purchase bills pose any problems for me or my parents?

Reply

antony August 25, 2014 at 5:34 PM

Hello Sir,

My sister and brother-in-law stay in Canada and are NRIs. We are staying in rented house in Bangalore. We wish to buy a residential plot in Bangalore. My sister has money in an NRE account of HDFC bank. Can my sister transfer Rs. 50 lakh to my SB account? To simplify the process of purchasing and registering plot, can I purchase the plot in Bangalore in my name? Will I have to pay tax for Rs.50 lakh?

Reply

antony August 25, 2014 at 5:52 PM

My sister and brother-in-law are NRIs and live in Canada. We stay in a rented house in bangalore. We wish to buy a residential plot in Bangalore. My sister has money in an NRE account of HDFC bank. Can my sister transfer Rs.50 lakh to my SB account in HDFC bank?

I being her brother, can I buy the property in my name? Do I have to pay tax on Rs.50 lakh which I will use to buy plot? We plan to construct a house after 2 years and occupy it ourselves. Please advice.

Reply

Jitendra P.S.Solanki September 5, 2014 at 6:35 PM

Antony,

NRIs gifting parents in India through their nRE account si well exempted from gift tax. But in my view its not the case in brother-sister relationship. So you may be liable for tax on amount gifted above Rs 50000.

Read here:

http://www.yourpocketmoney.com/2014/04/gifts-tax-pay-exempted.html

Reply

Rajesh September 2, 2014 at 6:49 PM

Hi,

It would be really wonderful if you can help me with this query.
My father is a retired person, with no income except the interest on Fixed Deposits that he has made. He is planning to sell a house which was in his name and want’s to help me in buying a house (in my name) in another city by gifting me money.
Can you please tell me:
1. What are the legal formalities required on his part to gift me the money?
2. What would be his tax liability?
3. What would be my tax liability because of this gift?

I would really appreciate your response

Many thanks.

Reply

Jitendra P.S.Solanki September 5, 2014 at 6:28 PM

Rajesh,

1. If gift is in form of cash then gift deed is not required. However, it will be preferable if your father do this through a gift deed to avoid any later issues from taxman.
2. He will be liable for capital gains tax
3. You wont have any tax liability

Reply

Dinesh September 4, 2014 at 2:28 PM

Hi,
My father want’s to buy the property (Agriculture Land) on my wife’s name.
Is it possible ? If yes then what are the legal issues with the same ?
we are particularly concern about the IT department asking my wife about the source of money etc.

Reply

Dinesh September 4, 2014 at 2:31 PM

Kindly help on the same.

Reply

dinesh September 5, 2014 at 3:27 PM

Please reply on my query.

Reply

Jitendra P.S.Solanki September 5, 2014 at 6:24 PM

Dinesh,

Thsi relationship is not under specified relationships so gifting provision is not available. Rest if investing on your name will be more feasible. For income tax clarification you should consult a good tax expert.

Reply

dinesh September 7, 2014 at 10:48 AM

Hi,
Thanks for your prompt reply. but the above article says that spouse of son and daughter are also under the relations. So can you please reconfirm if father can gift tax free money to the daughter in law ?

Reply

Jitendra P.S.Solanki September 8, 2014 at 11:53 AM

Dinesh,

The are two aspect in your case.

Gift- Yes looking closely at the gift tax provision the father- daughter-in-law relationship is exempted from gift tax.

Income – However, any income derived from this property will be taxed in the hands of your father and not your spouse. Here clubbing of income rule will apply which happens in case of gift received from Spouse, Father-in-law or Mother-in-law. Also if your spouse sells this property in future, the capital gains will be taxable in the hands of your father and not your spouse due to clubbing provision. However, its an agricultural land and income/capital gains from it is exempted from tax if it meets certain conditions. So it will be exempted in your fathers income also if it falls under that exemption criteria.

For more clarification you can seek assistance of a tax expert.

Reply

sneha September 6, 2014 at 1:50 PM

Hi Mr.Solanki

Would highly appreciate if you could clarify my doubt

I wish to liquidate the gold that I had received from my NRI parents and brother for my wedding. For the purpose of determining the LTCG tax I have done the following calculations. I’d appreciate if you could you please confirm if the following calculations are correct.

Cost of acquisition of Gold(Aug 2010) – Rs.41,75,795/-
Cost of acquisition with indexation – Rs.41,75,795 x 1024/711 (CII 2014-15/CII of 2010-11) = Rs.60,14,084/-
Sale Consideration = Rs.65,15,000/-
Capital Gains = Rs.65,15,000 – Rs.60,14,084 = Rs.5,00,916/-
LTCG tax of 20% on this amount = Rs.1,00,183/-

So if I understand correctly I have to pay Rs.1,00,183/- as LTCG tax?
I understand that I should declare this amount in my returns.
Secondly, my parents have not preserved the purchase bills of the gold. In that case, is it better to draft a gift deed from them in case the ITO wishes to verify the origin of the gift. Will not having the purchase bills pose any problems for me or my parents?

Reply

Jitendra P.S.Solanki September 8, 2014 at 4:24 PM

Sneha,

Your tax calculation is fine. If bills are not there then there should be a source to show from where it originated for you. In general you don’t need gift deed for movable items but yes if it is prepared will do good for you.

Ff gift deed is registered it should not. But you will be registering now so it may pose an issue. I am not aware of tax implications in detail. In my view you should meet a tax expert and seek his/her guidance.

Reply

Sneha September 9, 2014 at 11:23 AM

Thanks for taking the time to write back.

Reply

shaival September 11, 2014 at 3:17 PM

What if i am gifted 1Lac for my wife should i be paying the tax for it.

Reply

Jitendra P.S.Solanki September 15, 2014 at 11:37 AM

Shaival,

No. Spouse is covered under specified relatives and so your tax liability won’t arise.

Reply

bharat prasad sinha March 27, 2015 at 7:20 PM

i want to gift 5 lakh to my wife by chequewill i get gift tax exemption ?

Reply

vijay kumar September 11, 2014 at 7:11 PM

sir what is the legal probabilities to have a property with proprietor’s permission(mother).

Reply

hemant patel September 12, 2014 at 3:31 PM

Sir,
Is there any tax or penalty if gift of Rs.100000.00 given to huf by karta without any stamp paper agreement?
Thanks.

Reply

Jitendra P.S.Solanki September 15, 2014 at 11:50 AM

Hemant,

Although you don’t require a gift deed in case of movable properties, but its wiser to have one so that you have a proof to show to income tax authorities if asked for.

Reply

Ravinder Sharma September 14, 2014 at 11:22 AM

Sir,

My Father Wants to gift me 3-4 lakh rupees threw chque or RTGS . could you please suggest me the process so that is will be treated as gift and no tax will be applicable. My father is a govt. employee.

Reply

Jitendra P.S.Solanki September 15, 2014 at 11:56 AM

Ravinder,

An ideal option is to have a gift deed made by your father which will be a sufficient proof of the gifted money.Since the transaction is through cheque or RTGS the deed will act as a good supplement to it.

Reply

Dr Raja Rao September 26, 2014 at 8:30 PM

I sold a vacant site recently. I have put the money in capital gain account.
Out of that money part of it I have gifted to my son in UK
Will I get capital gain tax benefit for the amount I have sent to my son

Reply

Jitendra P.S.Solanki September 30, 2014 at 10:50 AM

Dr Raja Rao,

Since you are the holder of the said property, you are liable to pay capital gains tax. To get exemption, there are certain investments specified by IT and you need to invest within these. If you have gifted money to your son and its from the capital gain then you wont get any exemption on this money as gifting is not applicable for Capital Gains Tax Exemption.Do remember that if you have sold a land it comes under sec 54F and here you need to invest the entire sale proceeds to claim the exemption.

Reply

Dr Raja Rao September 30, 2014 at 11:16 AM

Thank you Mr solanki for your prompt reply. I Have invested part of the money on a residential land. Is vacant land exempt from tax?repair
Work & paint work on the present house exempt from capital gain tax?
Please clarify
Regards
Dr Raja Rao

Reply

Jitendra P.S.Solanki September 30, 2014 at 1:03 PM

Dr Raja Rao,

Investment in a vacant land is not eligible for Capital Gains Tax Exemption. If you construct a house on it within three years then you can claim for exemption.

Reply

Dr Raja Rao September 30, 2014 at 8:31 PM

Tank you mr Solanki for your advice.i am grateful to you.
Regards
Dr Raja Rao

Reply

Dr Raja Rao September 26, 2014 at 8:37 PM

Capital gain tax exemption for money sent as gift to children abroad ?

Reply

alok September 26, 2014 at 9:05 PM

Hi,
my friend who live in england(UK). he is not my relative.he is a british citizen by birth (english man). can he give me cash gift to me(in my personal A/C) indivisualy or through his ngo and what about taxes on that.

Reply

Jitendra P.S.Solanki September 30, 2014 at 10:53 AM

Alok,

A friend is not covered under the specified relative definition and so the money you will receive will be treated as your income on which you will be liable for income tax.

Reply

SIVA October 12, 2014 at 12:21 PM

My wife has rental income from an immovable property (2 storied – commercial ) to the tune of 12 lakhs per year. I have no rental income and my tax liability from regular income is much less. Can my wife gift one of the floors to me and in such case can this rental income from one floor be added to my regular income ( and accordingly reduced from my wife’s income)?
Kindly clarify

Reply

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Reply

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Reply

RSN Rao October 23, 2014 at 6:31 PM

Sir both me and my wife are assesses having business income separately. Recently a land has been purchased in my wifes name. If any amount was given to my wife as a gift is it liable for exemtion or not in my account. If it is liable to how much extent ? Can you clarify my doubt

Reply

Manikaran Singal November 9, 2014 at 3:21 PM

Mr Rao , you can gift any amount to your wife, but if your wife invests that amount and earn out of it, that earning will be added back in your income and taxed accordingly. As in your case, you want to gift your wife some amount which will be used to buy land. You can do that. But when she sell the land or earns out of it in any way, then the income generated will be attributed to you too in proportion to your contribution.
To avoid such thing…better not to gift but give loan to your wife.

Reply

manjunatha October 23, 2014 at 9:49 PM

Sir my friend willing to send a mobile from Manchester, UK. So do I wanna pay any tax if yes means please tell me how much % ?

Reply

Sunil nayak October 24, 2014 at 11:59 PM

Dear ones,

need your help. I am in India and somebody non relative wants to donate 4 million to my saying accounts. Should I pay tax in India? What are documents to provide to get that amount to Bank?

Reply

Manikaran Singal November 9, 2014 at 3:26 PM

4 million is a big amount. When its coming form a non relative, one thing is sure that it will be taxable, if at all you are receiving it on personal level. But the word “donate” is confusing me. Better to consult your banker and some tax expert for further queries, as they may want to get some documents sign to take care of anti money laundering requirements

Reply

Manikaran Singal November 9, 2014 at 3:29 PM

4 million is a big amount. When its coming from a non relative and meant for personal use then surely the amount will be taxable. The word “donate” is confusing me. Better to consult your banker for documentation as they may want to get signed some “Anti money laundering” docs, and also ask the purpose of such transfer. Also be in touch with some good CA for tax planning

Reply

Bipin Durgapal October 27, 2014 at 3:08 PM

Hi Sir,
My brother has transferred approx. Rs. 1 crore from UK since 2009 till Mar’2014 as cash gift. Is this amount is taxable ? Kindly mention the case or section in reply of your answer.
Early response will be highly appreciated.

Regards,
Bipin

Reply

Jitendra P.S.Solanki December 6, 2014 at 7:31 AM

Bipin,

Gift given to parents, brothers or sisters are exempted from gift tax under the income tax provision. You can read here:

http://www.yourpocketmoney.com/2014/04/gifts-tax-pay-exempted.html

Reply

Rakesh jain October 30, 2014 at 4:33 PM

If my mother in law gift a land to her daughter (my wife) and I sell that property than what tax I have to pay.??????????

Reply

Jitendra P.S.Solanki December 6, 2014 at 7:34 AM

Rakesh,

If you sell the property then capital gains tax will arise which you will have to pay.

Reply

Smt K Sarala Nair November 1, 2014 at 7:11 PM

Sir,
My self and husband want to help our son for buying a house. Can we both give money to help him for down payment. How can we transfer the money. Can we pay directly through our cheque to the builder or we have to trasfer the money. Please help. reply can be sent through my e-mail also.

Sarala

Reply

Jitendra P.S.Solanki December 6, 2014 at 7:37 AM

Smt. K Sarla Nair,

You can gift the money to your son wherein the amount will be tax exempted for him. Payment directly to the builder from you will not be a eligible transaction under gift tax exemption. You can transfer the amount to your sons account and can also have a gift deed, although not necessary in movable properties.

Reply

Smt K Sarala Nair November 1, 2014 at 7:12 PM

please help me .

Reply

sujit patole November 4, 2014 at 6:32 PM

My father has sold his propery and now he wanted to give some amount to son as a gift. Shall father get exemption in capital gain tax as funds given to son as gift. If yes then what we will have to do for process.

Reply

Jitendra P.S.Solanki December 6, 2014 at 7:41 AM

Sujit,

Gift to son is not an option for capital gains tax exemption. For this exemption there are specified investments such as investment in new residential property, capital gains tax bonds etc.. which your father will have to avail.

Reply

Priya November 4, 2014 at 6:45 PM

I am 72 year old retired woman having about Rs.40,00,000 lacs in fixed deposit ( tax paid money). I would like to come up with an arrangement where my NRO daughter can use this money as and when she visits India and inherit the same after my demise. Kindly suggest an arrangement and also will she have to pay taxes when she inherits this amount eventually.

Reply

Jitendra P.S.Solanki December 6, 2014 at 4:21 PM

Priya,

Inheritance tax is not applicable in India so here he she will not have to pay tax on the assets she inherit from you. However, she will have to check inheritance laws in her country of residence.

Reply

Aashish oza November 7, 2014 at 12:25 AM

Hi, I read the article which was quite insightful for me. I have a question about one problem relating to immovable property which I am having. Can you plz walkw through this it would be highly appreciated. I am actually a green card holder living in US. We have a home here in India which is named after my uncle( my father’s real brother). Now can this property be transferred under my name through gift.
And would there be any stamp duty charged for the transfer. And if the stamp duty is been charged then on which amount the stamp duty would be charged (on market value or on circle value)
and apart from this any other taxes would be charged. Also if it can not be transferred or gifted on my name whether it can be gifted or transferred to my mother’ s name.
And what all taxes would be implied.
Thank you. And I really appreciate the effort you put in answering the questions.

Reply

jitendra November 11, 2014 at 11:25 AM

Hello,

Me, My father and mother want to gift cash, to my wife.
Me 5 lacs
Father 15 lacs.
Mother 5 lacs.

Is this possible to gift cash and what is tax liability. Please suggest

Reply

Jitendra P.S.Solanki December 6, 2014 at 5:45 PM

Jitendra,

In My view…Gifts made to spouse, minor children and daughter-in-law for inadequate consideration will be deemed income in the hands of the individual making the gift. This means any income earned from the gifted asset will get clubbed with the income of the person gifting the assets in above three situations.

You cab get this confirmed from a tax expert.

Reply

Nilakanta Iyer K November 13, 2014 at 11:48 AM

I am a boy of 26 years old and working in an IT firm at Kochi and drawing a salary of Rs. 45,000/- per month. I am planning to buy a HOUSE , which costs minimum of 30 Lakhs to 45 Lakhs maximum, but sorry to say that, I am eligible for a Housing Bank Loan of Rs. 25 Lakhs only as per my monthly salary. In this case, my sister is ready to help me (she has not taken any Housing Loan till date) by taking a Housing Loan from a Bank. So my queries are as follows : –

[01] Whether 2 persons can take Housing Loans from different banks for one HOUSE?
[02] If so, whether both of us can take Income Tax benefit on the Loan repayments (ON Principal & Interest)
[03] If not, how can she help me?
[04] Suppose if she takes a personal loan from a bank and transfer to my bank account, since it is a huge amount
like either Rs. 15 or 20 Lakhs, will it not become a TAX liability for me, to avoid this, kindly advice me what
should I do, how can I take help from my sister without getting penalised. Awaiting your reply at the
earliest. K. N. Iyer

Reply

Renu Gupta November 13, 2014 at 12:37 PM

Dear Mr. Solanki,

I want to give some money to my senior citizen parents. I know that it will not be taxable income for them. But does that gift money also gets deducted from my income for income tax calculation?

I think not, but kindly confirm.

Regards,
Renu

Reply

Jitendra P.S.Solanki December 6, 2014 at 6:13 PM

Renu,

There is no tax deduction for gifting to your relatives. Only gifts to recognized charitable institution can be claimed as deduction.

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utpal chakravarty November 14, 2014 at 2:41 PM

Sir,
my bachelor uncle wants to gift a flat to me. shall I have to pay gift tax? If the flat is gifted to my wife, will the same clause apply.

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Jitendra P.S.Solanki December 8, 2014 at 10:12 AM

Utpal,

As per Income tax provision relatives are exempted from paying gift tax. If your relationship with your uncle fall within these relatives then you won’t have to pay gift tax. You can read here for more details:

http://www.yourpocketmoney.com/2014/04/gifts-tax-pay-exempted.html

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Niraj November 14, 2014 at 3:14 PM

My Mom Sold proerty at cost of 12 lakhs, I have purchased new flat.

Is there any way that she can save her Tax by gifting me amount of 12 lakhs,what is the process of gifting money ?

If she can gift me amount of 12 lakhs, do i have pay tax on 12 lakhs i have already taken home loan for new flat.

Awaitng your reply

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Jitendra P.S.Solanki December 8, 2014 at 10:20 AM

Niraj,

There is no capital gains tax saving on gifting the money. For it investment in a new residential property or capital gains bonds is required.

Reply

Sanjay B Jagtap November 15, 2014 at 2:13 AM

Dear sir,
I am a govt servant & doing business also. I am filling IT return of both as clubbing but in FY 2013-14 mother in law (she is farmer & donot pay tax) gifted me a car worth Rs 650000 which come into my assets. So whether i should pay tax on it or not?
My CA got confused

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Jitendra P.S.Solanki December 8, 2014 at 10:32 AM

Sanjay,

Gift to son-in -law are not tax exempted and so you will have to pay tax on the amount.

You can take view from another CA and find out.

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vijay November 18, 2014 at 8:50 AM

sir, my father sold a land and divided the proceeds among me , my brother and himself equally.Now i purchased a shop and my father gave me Rs.4 lacs from his share of capital gains to help me purchase a shop.please help me whether any tax liability would be applicable on me or my father. Thanks….vijay

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Jitendra P.S.Solanki December 8, 2014 at 10:49 AM

Vijay,

When your father sold the asset he was liable to pay capital gains tax. You haven’t mentioned the time so not aware when the transaction took place. If you delay the payment of tax you have to pay a penal interest along with the tax liability.

Rest you can take assistance from a tax expert.

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Pawan Parashar November 22, 2014 at 7:38 PM

Hello all
please tell me
Q. A father received some money from his son and paid to her spouse , tell me the section for the exemption of the amount and amount also 7lacs only

Reply

Jitendra P.S.Solanki December 8, 2014 at 11:44 AM

Pawan,

Gift to parents is exempted under income tax and so your father will not have any tax liability. However when he is gifting the same amount to his wife, if she is a housewife, then income from that money, if invested, will get clubbed with his income.

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Pawan Parashar November 22, 2014 at 7:48 PM

Hello All
tell me please
if father received 6 lacs from his son and paid to her spouse then tell me that what is the section for the exemption of the above mentioned amount.

please tell me fast

thanking you

Reply

pranav November 23, 2014 at 7:15 AM

HI,
Thanks for the great article. I too have an unanswered question. Please help me clarify.

I stay in India and work for a MNC for which I pay taxes regularly. On every month I am planning to work as freelancer for 2 separate individual but not relative . Both will give me close to 40000 INR each.
Please tell me if this can be shown as gift each month and what are the tax implications here.

Thanks,
Pranav

Reply

Jitendra P.S.Solanki December 8, 2014 at 12:17 PM

Pranav,

The amount you are going to receive is for delivering some service. So for income tax purpose you can show it as a freelancer income.
In case of non-relatives any gift received is taxable as your income.

In my view show it as your income for providing the respective service .

Reply

Ramita Jindal November 23, 2014 at 12:05 PM

I have following queries. Please help me:
1) I have received Rs 40000 as gift from a friend in cash . I have also received gift of Rs 1.5lac as gift from a relative through cheque. As I understand both are exempt from tax. My query is that should I declare 1,9lac this in EI schedule while filing the tax return?
2) Is it illegal to receive Rs 40000 as gift in cash?
3) To the best of my knowledge, clubbing provisions apply to one’s spouse and minor children. Gift from father-in-law and mother-in-law also entails clubbing?

Thanks in advance

Reply

Jitendra P.S.Solanki December 12, 2014 at 3:20 PM

Ramita,

1. The tax exemption is available only to specified relatives (Blood Relatives) and not friends. So any amount you receive from a friend will be taxable. But yes gift received up to Rs 50000 in kind or cash are not taxable. As far as relative is concerned you need to check the list for whom the exemption is available. Any relation outside the specified list will not be tax exempted. The other aspect you need to check from a tax expert is how these gift will be counted i.e. in total or seperately for deriving tax liability.
2. Till you are providing the source of money its fine.
3. Yes clubbing provisions apply in cases you have mentioned.

Reply

Harish November 27, 2014 at 12:21 PM

Hi,

My friend is working outside india and would like to give me 20 lac rupees. if he do transfer to my account. do i need to pay tax on this amount? if yes,can i ask him to transfer that amount to my father & mother account because both don’t have any income.

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Jitendra P.S.Solanki December 12, 2014 at 4:09 PM

Harish,

Gift from specified relatives are only tax exempted. Gift received from non-relatives gets exemption only up to Rs 50000 in a financial year. The amount your friend is giving way high and will be taxable.

Reply

vipul November 28, 2014 at 4:38 PM

If my father give me an apartment as gift. Any stamp duty will impose or not. I am married (daughter). Plz. help me.

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Jitendra P.S.Solanki December 12, 2014 at 5:54 PM

Vipul,

Yes stamp duty is payable on an immovable property. Also any property can be gifted only through a registered gift deed.

Reply

Balakumar November 30, 2014 at 11:32 AM

Kindly clarify to me

If i got any duty free cash promotion in UAE, can i use the many in INdia without paying any tax.

please give clear picture on this

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Jitendra P.S.Solanki December 12, 2014 at 9:57 PM

Balakumar,

You need to check with a tax expert under which head this income will be counted as in India. The tax liability will apply accordingly.

Reply

rakesh December 2, 2014 at 6:36 PM

we have 3 brothers with 1 property listed on our name. i want to remove one of the name from 7/12 (property) what is the procedure to remove the name.

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Neha December 4, 2014 at 12:43 PM

Hi
My Name is Neha Gupta, recently I purchase a property. My husband’s family would be paying some amount against this property as gift to us.
Can it would be tax free. What is maximum amount we can get from their side. they are salaried person but not submitting ITR as personal but ofcource we all are paying TDS thru our respective companies.
Plz guide how much money we can get from them.
Wait for your earliest reply.
Regards
Neha

Reply

Jitendra P.S.Solanki December 13, 2014 at 10:48 AM

Neha,

Gift tax from some specified relatives for any amount has been exempted. If the relation you are receiving gift from falls under the specified list then you won’t incur any tax liability.

Reply

Sunil nayak December 6, 2014 at 9:49 AM

Dear Sir,

i am an Indian and if some body has adopted me as son and wants to transfer me money. Upto what limitation he can send to my account? Is it legalize to get from adopted father? How can possible with tax exemption? Please clarify.
Thanks

Reply

Jitendra P.S.Solanki December 13, 2014 at 11:33 AM

Sunil,

Do not have a clear answer to your query. Need to check with tax expert on income tax definition of child. Butgot some information wrt income tax definition that ” However, S. 2(15B) of I. Tax Act to some extent has resolved this issue. S. 2(15B) extend the definition of child to stepchild and adopted child as well. Therefore, lineal descendant will include stepchild and adopted child also.”

So in line with this clarification adopted child should get the exemption under gift tax. But you should check with a legal expert for a clear answer.

Reply

Saiyed Sabahat December 9, 2014 at 9:55 AM

Hi,
My brother wants to gift me a car, I would like to know whether I would have to pay Customs duties in India or no?

Reply

Jitendra P.S.Solanki December 13, 2014 at 11:49 AM

Saiyed,

Yes if the car is being imported then you will have to pay customs duty. The gift tax only deals with personal income tax.

Reply

Mansoor shaik December 10, 2014 at 1:34 PM

Dear Sir,
I would like to purchase a car in India, let me know the taxes.
I am an NRI.
Thanks.

Reply

Jitendra P.S.Solanki December 14, 2014 at 9:46 AM

Mansoor,

In my view There is no tax to purchase a car in India. For an NRI what matters is the source of funds and the utilization.

Still seek advice from a tax expert.

Reply

ASHISH CHOUDHARY December 11, 2014 at 5:50 PM

Dear Sir,
what is the point of taxation in the hands of donor in case of cash gift given to a freind in his marriage of whatsoever amount, how will the donor treats the gift in his books in case he is an individual and has no business income.

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Jitendra P.S.Solanki December 14, 2014 at 9:04 AM

Ashish,

Donor can treat the amount as gift in his books as there is no tax liability on the donor for the gift. This is also due to the fact that whatever gift you give to anyone is after paying your personal income tax. Its the donee i.e. person who is receiving the gift who has to pay the tax if its above the threshold limit and from a non-relative.

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Shailesh Dubey December 13, 2014 at 2:41 PM

What will be the capital gain implications if we sold the gifted flat from my brother who had purchased land and construct a building and give me a flat as gift?

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Jitendra P.S.Solanki February 28, 2015 at 6:32 AM

Shailesh,

You will be liable for long term or short term capital gains taxation based on holding period of the flat only when you sell the flat. There is no tax liability on gifting the flat. But stamp duty will be payable since this can be done only with a registered gift deed..

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Abhishek December 16, 2014 at 2:59 AM

Can my masi daughter give me monetary gift.

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Jitendra P.S.Solanki February 28, 2015 at 6:33 AM

Abhishek,

Yes but that won’t be tax exempted in your hand.

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meera December 18, 2014 at 2:45 PM

My wife is housewife. I purchased a property in joint name with my wife(House wife). No money is contributed by her. I sell the property after three years and paid capital gains tax on whole sales proceeds recd both by me and my wife. The sales proceeds recd by me is given by me to my wife as interest free loan.
Now my wife purchases the property from the loan given by me and out of the sales proceeds recd by her from the first property in her name.
She sells the property and earns long term capital gain.
In whose hand is the capital gains taxable–In wife hands or husband

Reply

Jitendra P.S.Solanki February 28, 2015 at 6:39 AM

Meera,

In case of housewife any income derived form a gift received by her husband is clubbed with the husband income. Although you have given a loan to your wife but she wont have any income of her own to repay you back so that transaction can be questioned by the IT Officer.

Most likely the tax liability will fall in the hands of the husband since wife do not have any income of her own and tax cannot be avoided by such transactions. You can take view of any good tax expert.

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Sunil nayak December 24, 2014 at 9:09 AM

Dear Sir,

this is sunil, i am 45 years old and one lady from England made me next kin of her since nobody is to inherit her. She wants to transfer some amount through bank deposited. If i get money then is it taxable? To avoid tax what are the measurements can be taken. What documents to be shown to the bank or RBI. Please help me out. What are the best options?

Thanks a lot

sunil

Reply

Jitendra P.S.Solanki February 28, 2015 at 6:43 AM

Sunil,

If there is no blood relation between you then whatever amount she gives you (beyond R 50000) will be taxable in your hand. You cannot avoid the tax. You also need to check the inheritance where you will be paying tax as per England inheritance laws.

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R B SHANKAR RAO . December 24, 2014 at 10:11 AM

Dear sir ,
I want to give gift to my son who is employed and got married , one 3bhk flat in the apartment which was developed by my builder in my self acquired land ,under development cum building agreement .It is known that gift deed shall be registered for the same as it being immovable property .
I need to have an advice from you that such gift is taxable under gift tax act .
THANKS AND REGARDS .

Reply

Jitendra P.S.Solanki February 28, 2015 at 6:47 AM

R B Shankar Rao,

Gift received by parents will be tax exempted under the Gift Tax Provision and so you or your son won’t be incurring any tax liability on the gifted value. Yes stamp duty will be payable as it will happen through a registered gift deed.

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Jitendra P.S.Solanki February 28, 2015 at 6:56 AM

R B Shankar Rao,

Gift received by children from their parents is also tax exempted.

Reply

Rajani December 30, 2014 at 12:33 AM

Hi ,

Thank you for covering this interesting topic.
These are the few doubts I have,
1. Is an NRI allowed to transfer money to parents.
2. And if the parents are allowed to buy agricultural land with that money

3. The NRI later inherits the agricultural land from the parents, through a gift deed or after the demise of the parent.

4. Isnt this method allowing all the NRI ‘s to invest and buy agricultural land through this route.

Please explain.

REgards

Rajani

Reply

Jitendra P.S.Solanki February 28, 2015 at 8:38 AM

Rajani,

The transaction may not be so simple as it looks. There are rules which get applicable from RBI. In my view take assistance of a tax expert specializing in NRI taxation.

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santosh January 3, 2015 at 5:37 PM

I Can purchase or not gifted property. Father property given to daughter is gift as per income tax but I not a family member not relative give the reason.

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shalini January 9, 2015 at 6:41 PM

My mother wants to gift me a property.kindly let me know the process.

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Jitendra P.S.Solanki February 28, 2015 at 8:43 AM

Shalini,

For gifting immovable property a registered gift deed is necessary. The gift deed will be registered in sub-registrar office and stamp duty will be payable as per state laws.

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sunay January 10, 2015 at 8:41 AM

can a customer buy a plot from developer which is gained by a developer as gifted land?

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sri January 11, 2015 at 4:11 PM

Hey,

If I receive ~5lakhs INR from my parents, do me and my parents have to pay gift tax for the amount.
If yes, how do we declare this as gift from parents and next steps for both the parties.

Please advice.

Thanks,
Sridevi

Reply

Manikaran Singal May 1, 2015 at 4:32 PM

Any gift of any amount received from parents will be tax free in the hands of Children ( Above 18 years). Parents will give gift from tax paid/taxable or non taxable income income , whatever be the source of their income, so there’s no question of gift tax on them too.
For declaring as gift, its better that while doing transaction , both parties write a simple agreement/letter/note on plain paper, by mentioning PAN numbers of each donee and donor, that money is being given as gift under natural love and affection

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manoj January 20, 2015 at 11:31 PM

sir i won bike in lucky draw its amount 60000 its cut 30% tds on this.tell its tax can be return and how

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BS Thakur January 22, 2015 at 12:36 PM

Dear Sir,
My NRI son gifted me Rs.40 lakh in Nov. 2014 from his NRE accounts through cheques in my favour. Can I buy a residential flat with this amount in my name? He has signed a gift deed in my favour which is witnessed by his two colleagues and signed by me at his redience abroad in token of having aceepted the gift and he gave me two cheques which I have not yet deposited in my bank account apprehending some tax liabilities and its utilization for purchase of a flat. These cheques are valid for three months from the date of issue. Is the gift deed given by son in Nov.2014still valid, if I now deposit those cheques bearing date of November in my bank account and use the amount for purchase of a flat? Or Do I need to have fresh gift deed? Now we can not sign gift deed together as my son is now in foreign country and I am in India.
Your reply/guidance is awaited.
Thanks & Regards.

Reply

Manikaran Singal May 1, 2015 at 4:35 PM

Mr Thakur, though i am replying too late, but your transaction seem as genuine transaction to me.
You can do anything with the gifted amount given to you by your son.

Reply

Brenda February 20, 2015 at 2:10 PM

My husband wants to gift a flat on my name what is the procedure to transfer the flat on my name and do i have to pay or just make a gift deed agreement. what is the procedure if i am a housewife or working.

Reply

Utkarsh February 21, 2015 at 7:46 PM

Can my Father’s Brother’s Children give gifts to me

Reply

Vipin February 24, 2015 at 3:43 PM

Hi,
One of my friends from US has gifted me $5000.
What will be the tax implications on the same.
Kindly advice.

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G.S.Prasad February 27, 2015 at 11:06 AM

sir,
How much amount that i,can accept as a gifts from non relatives individually from each person each can give me less than Rs 20000.and around 100 friends are there to me. Shall i accept gifts around Rs 20 lacks on the occasion of commencement of my business. kindly guide me.Weather any tax implications are there and these are come under exempted gifts or not ?is there any income tax has to be paid on those gifts kindly guide me.

thanking you sir

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Bilwanandha N B February 28, 2015 at 8:31 AM

Hi my father is willing to gift a land to his sister is it taxable as other sources, Both are residents…

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Vivek Sharma March 2, 2015 at 11:39 AM

Sir,
I received a gift worth 5 lakhs and sold it for 6.5 lakhs. I donated the entire amount of 6.5 lakhs towards prime minister relief fund. I just want to check if I will have any tax liability on any of the above mentioned amount.

Thanks and Regards

Reply

kirandeep March 3, 2015 at 11:57 AM

Hello Sir,
my real brother living in canada want to gift me a plot of land situated in moga(panjab).Guide me with proper procedure and probable charges which i need to pay for this gift deed.Can my brother fulfill all formalities from canada.Later i have to construct house on this plot.for that i will have to take loan ,so guide me about the proper procedure

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alka trivedi March 3, 2015 at 1:11 PM

sir, my friend is sending gift abot 20 lakhs from uk. how much tax i pay

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Darsh March 3, 2015 at 2:11 PM

I have step son leaving abroad can he gift me any amt of money or it is taxable

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paarth March 4, 2015 at 12:16 AM

I am 19, and am about to get gold worth more than 50000 USD from an American national (no relation)as a gift. The transaction will be carried out in US. Am I liable to pay taxes. If so, do I have to pay it in both countries? If I keep the gold in US will I be taxed in future just to own it? How much % will be taxed.? I have no other source of income.

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Sanjeev Dhariwal March 4, 2015 at 8:57 AM

Sir i want to gift rs 50000 to my mother or brother.can i claim this as deductions in my ITR.if yes then under whuch section?

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Parth March 5, 2015 at 2:47 AM

My mother’s brother wants to gift me a jacket which is the cost of about 5200 inr..he is a distant relative so will the gift be tax exempted?

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devangi March 6, 2015 at 10:13 PM

my children receive cash during diwali, birthdays and special occasions. What is the tax treatment of this cash if I am regularly depositing this amount in their bank a/c ( minor a/c) linked to my a/c?

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Devang March 7, 2015 at 8:52 PM

Can my uncle give gift of rs 5 lakh to my daughter? Is it taxable ? Pls help

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Shivang Patel March 13, 2015 at 7:09 PM

I am a Permenant resident in united kingdom. I want to gift 10000 pounds to my father. Do i have to first transfer it to my NRO Account and then gift it or I can Transfer it Directly to his account in India? Please help

Reply

Dipak March 21, 2015 at 10:33 AM

I would like to know that a elder brother gifting to younger brother for 10 to 15 lakhs by way of cheques mentioning PAN NO and what is the procedure require.It will do if simply write down the details on a paper gifting the amount.Whether it require to register? Please explain.
Thanks ,
Dipak

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Dipak March 21, 2015 at 10:36 AM

I would like to know that a elder brother gifting to younger brother for 10 to 15 lakhs by way of cheques mentioning PAN NO and what is the procedure require.It will do if simply write down the details on a paper gifting the amount.Whether it require to register? Please explain. Elder brother is not filing the return due to no taxable income and above 80 years of age.
Thanks ,
Dipak

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Yatin minkar March 28, 2015 at 8:04 PM

My mother Sister has some agriculture land..she is going to sell it, money will come is tax free . Now she going to gift me more than 50000 .. is this taxable ?

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John April 12, 2015 at 10:38 AM

Dear sir,
I am an NRI from Australia. My mother in Law wants to donate some agricultural land to my wife. Is it allowed by Law? Is my wife who is also NRI is allowed to receive it? are we allowed to sell it in the future is she receives it?
Kind Regards
John

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Namchei Riamei April 19, 2015 at 2:30 PM

Dear sir, One of my american friend wanted to send me a gift in cash. How and what are the procedures i need to follow to recieve it?

Please help

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Vaibhav Jain April 20, 2015 at 3:20 PM

Thanks for you effort for clearing so many queries for different issues.
Well I have one query as well, hope you can help in to understand…
I booked a flat in name of my Brother and me in 2011 and now same is ready for registry. My father paid a handsome amount over the period of time from his bank to fulfill the builder payments.
My query is, after the registry done for that flat under mine and brother’s name, do we need to show amount paid by my father in our ITR/ records? Or same can be considered as gift from Father to Son to buy property?

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ramakrishna April 26, 2015 at 6:50 PM

Dear Sir,
I want to give the amount received from selling a residential plot which is a joint property (myself and wife) to my son who is residing in US after paying the Income Tax in India for the above amount received . Pl. suggest how to send it by way of gift or otherwise. If sent as gift after paying Income tax here will it be taxable in US and what is the maximum amount that could be sent in dollars. since the property is in joint name should I take two cheques from the buyer. pl. advise.

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anand April 29, 2015 at 7:08 AM

Can a NRI son in law give money to his father in law to buy a property. The father in law don’t have any money from his side in this property transaction. Will the money from NRI son in law will be taxable? How much money he can send?

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Rashi May 3, 2015 at 12:57 AM

hi, I am an nri. I want to gift my property to my niece who is also an nri property worth is of rs. 2100000/- . Can u pls say will I have to pay any tax Amount or it’s not applicable

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Puneet Gupta May 6, 2015 at 10:02 AM

in case i am recieving a cheque of 50000 rupees as a gift that will be exempyed in my hands. I want to register a gift deed between me and the person giving it, so of what amount of stamp paper will be required on which i can register the deed

Reply

ankit May 12, 2015 at 8:11 AM

Hi,
If i receive money from my brother who is an NRI(amount 3 lakhs) & invest that within a month to buy property, if i sell that property after 3 years are there any additional tax liabilities apart from short term gains?

thanks for revert.

Reply

amit mukherjee May 13, 2015 at 9:39 AM

hello,
i am swapna mukherjee.if my brother in law gift me some property valued about 6,77,000.Then what will be the tax and stamp duty fees.how much it will be…I need to know hurry..what is the percentage of tax and staming.

Reply

Hemant Kumar May 23, 2015 at 7:33 PM

I want to gift Rs Five lakhs to my daughter in law , is there any gift tax for any of us. Both r pan card holders ,
Is there any clubbing of tax

Reply

Manikaran Singal May 24, 2015 at 1:17 PM

Though this transaction will be out of purview of gift tax as father in law can gift any amount to daughter in law. But yes, this do attract clubbing and whatever your daughter in law earns out of that money if she invest it somewhere then that earning will be clubbed in your income and taxed accordingly.

Reply

Dinesh June 4, 2015 at 9:00 AM

Sir,
My friend an NRI is sponsoring fees for my daughter’s NRI Quota admission in India. Should it be taxable for my daughter or me? My daughter is major.

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Geetha June 5, 2015 at 9:00 PM

i sold a property. With the amount which I got can I buy a property on my daughter’s name and gift it to her? Will it attract any tax like capital gains for me or my daughter

Reply

Manikaran singal June 6, 2015 at 8:40 PM

Your selling of property will surely attract capital gain tax, but the txn of gifting of the to your daughter for buying property or buying it in her name will not attract any tax as it will b treated as gift.
it would b wise if u buy property in ur name which will help u in saving capital gain tax on property ( if long term) and bequeath this property through WILL. Though u can also gift ur proprty to ur daughter but in that case also some costs like stamp duty etc. are involved

Reply

dinesh June 6, 2015 at 5:48 PM

my friend an NRI is sponsoring tution fee of my daughter for NRI Quota admission.my daughter is major and indian resident. Is she or I have any tax liability.

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SHanmuk July 14, 2015 at 2:11 AM

Is there ay limit on the frequency or amount of cash gifts to my father’s sister. I am ex-Indian living in USA and my aunt is in India. I want to send amounts several times a year

Reply

SG July 27, 2015 at 10:00 AM

Hello
I have got a land from my brother in law (sisters husband). Now I am planning to develop the land. Would like to understand what would the taxation be if
(a) Land value – 100 (assumption)
(b) Construction cost – 150 (assumption)
(c) Sale price – 350 (assumption)

What will the profit be for me after developing assuming development completed in 1 year
Case 1: 350-150 [c-b] i.e. 200
Or
Case 2: 350-(150+100) [c-(b+a)] i.e. 100

Kindly let me know

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MANI July 31, 2015 at 11:56 AM

Is remittance received from my daughter and SIL who are now US CITIZENS into my S/B a/c in Mumbai to be treated as my Income for I-tax purposes? Under what section/s it is exempt and if so what is the limit for such Remittance recd.by me as Sr.Citizen retired in India from my Relative abroad who are Citizens of US? Further is there a necessity to show such amounts in my IT-Return ITRI?

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MANI August 2, 2015 at 1:20 PM

NO SOLUTION from anybody?

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R P AGGARWAL August 2, 2015 at 4:54 PM

Me & my wife ( Indians living in India) want to separately gift money t0 our daughter, son in law & grand son ( all British citizens living in UK). How much money each of us can gift every year and what will be tax implications at our end as well as their end at UK ?

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Ss August 15, 2015 at 1:50 PM

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

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