Father can issue cheque for any amount
It is not necessary to execute gift deed
Gift by father to daughters
My father have received the maturity (after 3 years) amount from capital gains tax exemption bonds. This is received in his bank account. This amount he plans to gift to his daughters vide cheque payment. 01. is there any monetary limit up to which only he can gift in a FY ..[or he can issue cheque for any amount]....... 02. Is it necessary to have an affidavit or a gift deed for the same
Asked 8 years ago in Taxation
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4 Answers
1.There is no monetary limit to gift one's moveable assets to anyone he chooses.
2.So he can do so without any paperwork as for gifting money no deed is required to be executed and registered.
3.Sohe can do so by cheque payment .
1. there is no limit to gift maturity amount of CG exemption bonds.
2. gift deed and its registration is not necessary. deed is not necessary in gift of movable property. but you have to mention it in ITR because it is mandatory.
As per the Income Tax Act, 1961 if the value of gifts received is more than Rs. 50,000 a year, then such amount is taxed as income in the hands of the receiver. These gifts may be in any form – cash, jewelry, movable and immovable property, shares etc.
However, this rule is not applicable if your relatives present the gifts, the income tax rules specify relatives from whom tax free gifts can be received. These are:
Parents
Spouse
Your and your spouse’s brothers and sisters
Brothers and sisters of your parents
Your lineal descendants (including spouses)
Lineal descendants (including spouses) of your spouse.
