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Question ID : 38123

Cash Gift from relatives

Can A (son) receive cash gift of Rs 8Lacs from her mother B? Will this be treated as inocme of A or B or Both? Do they need to execute the Gift Deed ? Thanks

Posted by CA. BISHT RAKESH on May 01, 2019

Filed Under Income from Other Sources

Answer ID : 76529

No Bar on Gift . Gift is not income either of A (Son) or B (mother) . advisable to execute Gift deed However not mandatory on stamp paper However you should take care provisions of section 269ST , cash exceeding Rs. 2.00 lacs is not allowed otherwise 100% penalty .

Posted by SANDEEP KAPOOR on May 02, 2019
Answer ID : 76530

Section 56(2) is not applicable to cash gift received from relatives. Hence not considered as income in the hands of any party. But section 269ST will be applicable even if received for personal purpose. Hence it is better to receive this gift through account payee cheque by executing gift deed,

Posted by CA. chunauti dholakia on May 02, 2019
Answer ID : 76534

A CAN RECEIVE GIFT FROM HIS MOTHER- EXEMPT . BY CROSSED ACCOUNT PAYEE CHEQUE. ADVISABLE TO EXECUTE A GIFT DEED....

Posted by Sanjeev Manmohan Vora on May 05, 2019
Answer ID : 76543

THE SON CAN RECEIVE A GIFT FROM HIS MOTHER AND THE GIFT IS NOT TAXABLE IN THE HANDS OF THE DONOR OR THE DONEE. BUT SEC 269ST PROHIBITS THE RECEIPT OF RS 2 LAKHS OR MORE ON A SINGLE DAY OF EVENT OR TRANSACTION. THIS WILL LEAD TO PENALTY PROCEEDINGS.

Posted by CA. VENKITARAMAN K V on May 07, 2019
Answer ID : 76555

Sir You can get gift from specified relatives INCLUDING MOTHER AND MOTHER IIN LAW and this need not not to be taken as Income. It is always better to geT GIFT deed and get the payment by cheque /draft/bank transfer. All these ttransactionns have to be very carefully carried out indicating the source of funds. the assessing officer has to be fully satisfied. Thanks CHARAN DASS SHARMA)

Posted by Charan Dass Sharma on May 12, 2019
Answer ID : 76726

Gift in cash can be made orally and no documentation is necessary in law. No Income tax liability for both.

Posted by SIVADAS CHETTOOR on Jun 03, 2019
Answer ID : 76816

THE GIFT WILL BE EXEMPT FROM TAX. BUT AS IT EXCEEDS RS.2 LAKHS, IT WILL VIOLATE SEC. 258BA AND WILL HAVE TO BE REPORTED AS A SPECIFIED FINANCIAL TRANSACTION ATTRACTING EQUAL AMOUNT PENALTY.

Posted by CA. VENKITARAMAN K V on Jun 09, 2019